TNAG-1061-FCO40-1311-The-Kowloon-Canton-Railway-1981 — Page 28

OL TC HONG KONG

GR 220

CONFIDENTIAL

173/2

авле

ΖΟ

пи

فقد

Un Mcture

HKK 173/2

Mn willyson

thy Scale.

RECEIVED IN REGISTRY NO. 51 10 SEP 1981

DESK OFFICER

INDEX

FM D O T 0417412 SEP 81

PA

REGISTRY

7 ke

No Masoa Mas 0.

TO IMMEDIATE BTC HONG KONG

TELEGRAM NUMBER CREDA 172 OF 4 SEPTEMBER

METRO-CAMMELL

PA KER

FOR MARCH FROM DURIE

DOT/CRE

129

TRED

HKAG

See

21

1. YOU SHOULD KNOW THAT IT WILL STILL TAKE AT LEAST A FORTNIGHT DEFORE WE CAN GET FIRM DECISIONS ON METCAM'S ABILITY TO TAKE FIXED PRICE CONTRACTS AT ACCEPTABLE LEVELS FOR BOTH THE MASS TRANSIT AND THE KOWLOON-CANTON RAILWAYS. MET CAM BELIEVE THAT THE PRESENT SITUATION IN HONG KONG IS BEING HELD ON BOTH AND THAT THERE IS NO NEED AT PRESENT FOR YOU TO ENSURE THAT THE MTR AND THE OTHERS ARE KEPT IN PLAY, BUT, IF NECESSARY, YOU COULD MAKE IT CLEAR THAT WE WOULD EXPECT KETCAM TO KNOW WITHIN THE NEXT TWO WEEKS OR SO WHETHER THEY ARE IN A POSITION TO CONCLUDE NEGOTIATIONS.

2. FOR YOUR OWN INFORMATION, WE ARE LOOKING AT A POSSIBLE INDUSTRY NCT PACKAGE WHICH WOULD ENABLE METCAM TO MAKE FIXED PRICE BIDS FOR

BOTH WITHOUT ANY COST ESCALATION COVER OR CREDIT FOR THE KCR. IN THESE CIRCUMSTANCES WE WOULD OBVIOUSLY HOT WANT ANY ACTION BY US TO ENCOURAGE THE HONG KONG GOVERNMENT TO TURN TO CREDIT, THOUGH I WOULD WELCOME YOUR LATEST ASSESSMENT OF WHETHER THEY ARE LIKELY TO

TURN TO CREDIT IF THEY DO GO TO INTERNATIONAL TENDER.

3. YOU SHOULD KNOW, TOO, THAT IT WILL NOT BE EASY TO ARRIVE AT A

SOLUTION FAVOURABLE TO METCAM.

NNNN