TNAG-0854-FCO40-1064-The-Kowloon-Canton-Railway-1979 — Page 72

ISRP.

CONFIDENTIAL...

HKK 173/1

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NO. 51

(173/20

1978 Flag A

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Mr Cortazz

FS/Lord Goronwy-Robgy

HONG KONG:

1.

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IND

OFFICER

Noi

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MODERNISATION OF KOWLOON/CANTON RAILWAY (KCR)

In his letter of 20 November 1978 to the Secretary of State for Trade's Private Secretary, Mr Wall confirmed that in the Secretary of State's absence Lord Goronwy-Roberts had no objection to arrangements that had been worked out between Government Departments and the firm Metro Cammell Ltd (Metcam) to allow the latter to quote a competitive price for the supply of new rolling stock for the Hong Kong part of the Kowloon/Canton Railway, worth £44.4 million. background is set out in my submission of 20 November 1978.

The

2.

The Minister of State may wish to be aware that Metcam's bid has now been accepted (BTC Hong Kong Telegram No Creda 1 of 2 January. Neither the Hong Kong Government nor the British Trade Commission intend to publicise the news for the time being as Metcam are currently bidding for a further contract to supply rolling stock for the second stage of Hong Kong's new underground railway system, the Mass Transit Railway (the company won the first stage contract in 1976). A decision on this contract (worth about £52 million) is expected in early February. Here again Metcam have been given Government support, particularly over financing, to enable them to quote a price that is believed to be competitive with prices quoted by Japanese, Canadian and Australian firms. If Metcam are also successful in this bid, the two contracts will provide excellent background publicity for the visit that Mr Varley plans to pay to Hong Kong in February.

выборми

11 January 1979 Copies to:

Mr Murray or

TRED

News Department

R J T McLaren

Hong Kong and General Department

CONFIDENTIAL

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