TNAG-1061-FCO40-1311-The-Kowloon-Canton-Railway-1981 — Page 29

FROM HEAD PROJECTS & EXPORT POLICY DIVISION BRANCH 1

DEPARTMENT OF TRADE

1 VICTORIA STREET

PA

(19)

CONFIDENTIAL

LONDON SWIH OET

MKK 1731 Telephone Direct Line

RECEIVED IN DAY NO. 51

DESK

10 SEP 1981

Switchboard

01-215 5454

01-215 7877

INDEX

J Butterworth Esq

HM Treasury

fão 1019

8 September 1981

Dea Butte weith

METRO CAMMELL

KOWLOON CANTON RAILWAY

Following your conversation with Ray Burleigh 'here last week I told Derek March in the British Trade Commission in Hong Kong that we would not want any action by us to encourage the Hong Kong Government to turn to credit for this contract, but at the same time I asked him for his latest assessment of whether the Hong Kong Government would be likely to turn to credit if they do eventually go to international tender.

March's reply reiterates his earlier advice that if we can fix something which enables the KCR to place a variation order, Metcam can expect a contract; if not, they will go to international tender and the Hong Kong Government would not rule out offers of credit if it appeared to their advantage.

I am copying this letter to Steadman ECGD, Priston MEE/DoIndustry & Clift, Hong Kong & General Department, FCÓ.

DRC DURIE

Yours sincerely

David Di

Mr. William 1014

M. Scarle

No action by

us at

is

present but please keep closely in truck col PRP

Drla