TNAG-0854-FCO40-1064-The-Kowloon-Canton-Railway-1979 — Page 83

Ple

HOFO C02/2

00 DO T

RR F C O

with files

1978)

Sume Samil?

NO DISTRIBUTION

ዝተ

DoT

PINGUINIS IS 173/1.

RECEIVES

Do Env

12

KO. 51

love

No

DALITAY

RR D O I

RR DEPT OF TRANSPORT

GRS 215

RESTRICTED

MrQu

Whing

-

FM BTC HONG KONG 028085Z JAN 79

TO IMMEDIATE D O T

HKG D

See 38

TRED (2)

PUSA (2)

K129

(x5)

please consider in the light

of post correspondence: I am inclined

to think we should submit

TELEGRAM NUMBER CREDA 1 OF 2 JANUARY

725

INFO F C O, DO I (FOR BENJAMIN), DEPT OF TRANSPORT (FOR LAZARUS)

MY CREDA 365: KOWLOON CANTON RAILWAY (KCR)

1. IN A LETTER DATED 29 DECEMBER THE HONG KONG GOVERNMENT HAVE

INFORMED ME THAT THEY HAVE DECIDED TO AWARD THE CONTRACT FOR THE DESIGN, SUPPLY AND COMMISSIONING OF ELECTRICAL MULTIPLE UNITS FOR THE KCR TO METRO-CAMMELL LTD AT THE PRICE OF POUNDS STERLING 44.4 MILLION PLUS ACTUAL COST OF SHIPPING. THE DIRECTOR OF ENGINEERING DEPARTMENT OF THE PWD WILL SEND FORMAL NOTIFICATION OF

THE AWARD DIRECTLY TO METCAM.

2. THE HONG KONG GOVERNMENT DO NOT REPEAT NOT INTEND TO GAZETTE THE AWARD. I RECOMMEND WE FOLLOW THIS LOW PROFILE TO AVOID ANY UNFAVOURABLE SPECULATION WHICH COULD HARM METCAM'S BID FOR STAGE

2 OF THE MASS TRANSIT RAILWAY RAILCAR CONTRACT WHICH IS DUE

TO BE DECIDED ON FEBRUARY 5. SANSOME, CHAIRMAN OF METCAM, IS AWARE

OF THE POSSIBLE INTERACTION OF THE TWO CONTRACTS.

3. WE AT THE TRADE COMMISSION WILL NOT INITIATE PUBLICITY. IF ASKED WE SHALL SIMPLY CONFIRM THAT WE ARE AWARE OF METCAM'S SUCCESS. IF WE ACHIEVE THE MTR AWARD, THE TWO CONTRACTS WILL PROVIDE EXCELLENT PUBLICITY MATERIAL FOR MR VARLEY'S FORTHCOMING

VISIT