TNAG-0855-FCO40-1065-Construction-of-underground-railway-system-in-Hong-Kong-1979 — Page 110

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You may have noticed in the London newspapers of 6 February that Metro-Cammell have won an order worth some £50 million to provide rolling stock for the second phase of the Hong Kong Mas Transit System. The same reports mention that Metro-Cammell are competing for a contract to supply rolling stock for the Hong Kong section of the Kowloon-Canton railway which is to be modernised. In fact we already know privately that Metro-Camme will secure this contract which is valued at approximately £44

The press say discreetly that ECGD, when asked, had acknowledge that they were underwriting the credit risks for the Mass Trans contract. I am sure this discretion is admirable but you will wish to know that in relation to both contracts there has been the closest collaboration between the Departments of Trade, Industry, and Transport and ECGD with of course indispensible

The Governor wi help from the Foreign and Commonwealth Office. great discretion has also helped. Both firms and especially th British Trade Commissioner have enjoyed a close and fruitful relationship with the potential buyers.

I am particularly glad that these contracts have been won not for their own sake and for the sake of the security of employme that they will provide both to Metro-Cammell and their many su contractors, but also because we have reason to believe that th Chinese authorities are keeping a close eye on what is happeni in Hong Kong. In particular there will be good technical argu for ensuring that equipment used within China on the Kowloon- Canton railway is compatible with that used in Hong Kong when, we now expect, the Chinese authorities decide to modernise the sector of the line. It can also be nothingbut helpful more wid if Metro-Cammell can establish a reputation as suppliers for transit systems in climatic conditions of Hong Kong. Singapor