TNAG-1061-FCO40-1311-The-Kowloon-Canton-Railway-1981 — Page 50

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HO/FO #35/14

00 D O T

GRS 275

CONFIDENTIAL

FM BTC HONG KONG 140930Z AUGUST 81

TO IMMEDIATE D Q T

NO DISTRIBUTION

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7

PA

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HKK 173/2

CRE

тест

TELEGRAM NUMBER CREDA 197 OF 14 AUGUST

YOUR CREDA 162: KOWLOON-CANTON RAILWAY

SANSOME WOULD LIKE A DECISION AS SOON AS POSSIBLE BECAUSE

TO AVOID INTERRUPTING THEIR PRODUCTION AND SUB-CONTRACTING SCHEDULES, MET-CAM NEED A FIRM ORDER FROM THE HONG KONG GOVERNMENT BY OCTOBER. TO MATCH SANSOME'S TIMETABLE HOWES,

See

- ૬

NOW DIRECTOR OF RAILWAY DEVELOPMENT IN THE HONG KONG GOVERNMENT

WOULD LIKE A FIRM OFFER FROM MET-CAM BY THE END OF AUGUST IN ORDER TO HAVE TWO MONTHS IN WHICH TO PROCESS THE NEGOTIATIONS THROUGH LOCAL ECONOMIC AND FINANCIAL COMMITTEES.

2. I HAVE SUGGESTED TO HOWES THAT WE SHALL FIND IT DIFFICULT

TO SOLVE THE ESCALATION PROBLEM THIS MONTH AND HAVE SO WARNED SANSOME WHO LEAVE HERE THIS EVENING.

3. HOWES HAS GIVEN ME THE BACKGROUND TO THE NEW ORDER AND

IS ARRANGING FOR ME TO SEE SAVAGE OF FINANCE BRANCH EARLY

NEXT WEEK. I SHALL THEN FORWARD A DETAILED CASE FOR

SUPPORTING MET-CAM'S PROPOSITION. IT IS JUST POSSIBLE THAT THE

HONG KONG GOVERNMENT MIGHT CONSIDER A CREDIT DEAL ON THE

RIGHT TERMS ALTHOUGH THEY WOULD CLEARLY PREFER AN

EXTENSION OF THE EXISTING CONTRACT ON CASH TERMS.

MARCH

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