TNAG-1061-FCO40-1311-The-Kowloon-Canton-Railway-1981 — Page 53

COMMERCIAL IN CONFIDENCE

modernisation plans, it is expected that the Chinese will eventually equire new rolling-stock for their own

railways, particularly their part of the Kowloon to Canton line. If the whole KCR order is secured, Metro-Cammell

would then be well placed for such orders.

3. It is also worth bearing in mind that a Transport

Conference is being planned to be held in Hong Kong in

February 1982. The aim is to promote the work of British

consultants and exporters, using Hong Kong, which has

bough much from our transport industry, as a showpiece.

It could be serious if the KCR had, just prior to the

conference, turned to our foreign competitors for the

I therefore hope you remaining rolling-stock.it requires.

will agree to the provision of Cost Escalation Cover.

4. I am copying this letter to members of EX Committee,

to Norman Fowler and to Sir Robert Armstrong.

COMMERCIAL IN CONFIDENCE

1