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01Oct92 UK: LONDON'S JUBILEE LINE TO GO AHEAD.

The Government is expected to announce the go-ahead for the Jubilee Line extension at next week's Conservative Party conference.It follows a meeting with Canary Wharf's administrators yesterday (Wednesday) when accountants from Ernst and Young put £100 million up front to start construction of the £2,000 million route.Additional contributions of £75 million will be made over the next 25 years.The meeting with Government troubleshooter Lord Wakeham was hastily arranged when the group of 11 principal banks owed ash by the crash of Canary Wharf agreed to put up funding for the Jubilee Line.Sources close to the negotiation have revealed that a core condition of the private funding offer is an assurance that civil servants will be moved into Canary Wharf.But white collar unions are opposed to the move.Before calling in the receivers, Canary Wharf's developer Olympia and York had pledged to contribute £400 million to extending the Jubilee Line.But the original offer contained a much smaller down-payment of £400 million. The funding package put forward yesterday is close in real terms to the first offer.Contractors bidding for work on the line have received the news with measured optimism.One director, holding a provisional letter of intent for a major civils package, said: 'The hard talking will start now but it will drag on. The extension will probably go ahead, but not this side of Christmas.'London Underground has issued provisional letters of intent for four of the civils packages.