PRIME MINISTER
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M. Thomas
RAIL PROJECTS IN HONG KONG TRAd.
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 Mass 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-Cammell will secure this contract which is valued at approximately £44 milli
The press say discreetly that ECGD, when asked, had acknowledged that they were underwriting the credit risks for the Mass Transit 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 help from the Foreign and Commonwealth Office. The Governor with great discretion has also helped. Both firms and especially the 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 only for their own sake and for the sake of the security of employment that they will provide both to Metro-Cammell and their many sub- contractors, but also because we have reason to believe that the
Chinese authorities are keeping a close eye on what is happening in Hong Kong. In particular there will be good technical arguments for ensuring that equipment used within China on the Kowloon- Canton railway is compatible with that used in Hong Kong when, as we now expect, the Chinese authorities decide to modernise their sector of the line. It can also be nothingbut helpful more widely if Metro-Cammell can establish a reputation as suppliers for mass transit systems in climatic conditions of Hong Kong. Singapore,
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