TNAG-0855-FCO40-1065-Construction-of-underground-railway-system-in-Hong-Kong-1979 — Page 179

GAS 1000A

RESTRICTED

FROM DTI 151305Z JAN 7)

TO PRIORITY PEKING

TELEGRAM NUMBER CREDA 008 OF 15 JANUARY

INFO BTC HONG KONG

Нияда MK

HKR 193/2

Rodeo &

IN

OFFICER

NOT

NO.

FROM TWYMAN, HEAD, OVERSEAS PROJECTS GROUP_Yochdlord I

JANUARY: MODERNISATION OF SCHUMCHUM TO GUANGZHOU RAILWAY

1. THANK YOU FOR YOUR HELPFUL ASSESSMENT AND ADVICE.

Witamin

gn

See 2

ры

2. WE, TOO, WERE IMPRESSED BY ORGANISATION OF CAMPBELL MISSION AND ARE PLEASED TO HAVE YOUR CONFIRMATION OF THE REACTION OF THE CHINESE. WE DO NEED TO KEEP A CLOSE WATCH ON BR ACTIVITIES, HOWEVER, AND CANNOT REMAIN IMPARTIAL IN DISPUTES BETWEEN BR AND GEC. IF ANYTHING WE HAVE A LITTLE MORE SYMPATHY TOWARDS GEC THAN BR. GEC-TPL (TRANSPORTATION PROJECTS LIMITED) HAVE DONE WELL IN MARSHALLING SUPPORT FROM THE PRIVATE SECTOR AND WE ADMIRE THEIR ENTHUSIASM. SOMETIMES IT MAY BE COUNTER PRODUCTIVE BUT THEY MEAN WELL AND OF RECENT MONTHS HAVE BEEN BEHAVING IN A RESPONSIBLE MANNER (PERHAPS A REFLECTION OF THE FACT THAT A D/ENERGY ASSISTANT SECRETARY, COHEN, HAS BEEN SECONDED TO THEM).

3. FOR YOUR CONFIDENTIAL BACKGROUND INFORMATION GEC DOUBTS ABOUT BR ARE AS FOLLOWS. BR ARE AS FOLLOWS. BR ARE OBVIOUSLY MAJOR CUSTOMER OF GEC. THEY TEND TO TREAT THEIR SUPPLIERS IN A SOMEWHAT ARROGANT MANNER ON OCCASIONS AND, SINCE GEC CANNOT ANTAGONISE A MAJOR CUSTOMER THEY HAVE TO ''LUMP IT''. THIS IS NOT SIMPLY A MATTER OF ARMOUR PROPRE. IN SPECIFICATIONS AND STANDARDS, FOR EXAMPLE, BR DOES NOT NECESSARILY KNOW BEST. AND BY CONCENTRATING ON BR'S DOMESTIC NEEDS TO THE EXCLUSION OF OTHER CONSIDERATIONS BR CAN HINDER THE PRIVATE SECTOR'S EXPORT PERFORMANCE BY SPECIFYING TOO NARROWLY (THIS IS A GENERAL PROBLEM WITH NATIONALISED INDUSTRIES E.G. ELECTRICITY GENERATION).

4. IT IS INEVITABLE THAT BR HAVE ́A LESS COMMERCIAL APPROACH THAN PRIVATE SECTOR FIRMS AND THAT ITS STAFF HAVE A DIFFERENT ATTITUDE TO EXPORT SALES. BR DON'T LIVE BY SELLING: GEC DO.

5. A PARTICULAR ASPECT OF THIS CONCERNS CONSULTANCY. BR ADVISERS DO NOT ALWAYS ACT WITH UK LIMITED' IN MIND. WE HAVE EXAMPLES OF THEIR STAFF ADVISING CLIENTS TO ADOPT SPECIFICATIONS WHICH PLAY INTO THE PANDS OF E.G. JAPANESE SUPPLIERS, OR GRATUITOUSLY ADVISING THAT THE PROJECT IN WHICH GEC IS INTERESTED IS NOT NECESSARY. THAT IS NOT THE OBJECT OF THE EXERCISE AND WE DEPLORE THE ''PURITY''