4
HOFU 822/07
AR DO T
RR ECGD
RR FCO
GR 360
CYPHER/CAT A
FM HONG KONG 071180Z
RESTRICTED
RECEIVED IN REGISTRY No. 01
10 FEB 1975
HKK 21/4
TO ROUTINE D O T TELNO CREDA 25 OF 7 FEBRUARY INFO ECGD (FOR COTTERILL), FCO (FOR STEWART HKIOD)
MISS WELCH CRE4.
FOR FARRY OPG# FROM KINNEAR.
YOUR TEL CREDA 26: MASS TRANSIT.
LAT
*t
TO
(16
IN DECIDING THE BEST TACTICS TO BE ADOPTED, YOU MAY LIKE TO TAKE INTO ACCOUNT THE FOLLOWING CONSIDERATIONS:
(1)
が
WHILE THE JAPANESE ARE EXTREMELY UNPOPULAR HERE AT PRESENT, I WOULD EXPECT THE MASS TRANSIT AUTHORITY TO LOOK FOR THE BEST DEAL IT CAN GET AND IT WOULD BE UNWISE, THEREFORE, TO ASSUME THAT JAPANESE COMPETITION CAN BE IGNORED. THE FRENCH AND GERMANS HAVE BOTH BEEN OUT HERE AND I AM TOLD THE AMERICANS ARE SHOWING INTEREST.
(11) IN PRESENT WORLD ECONOMIC CONDITIONS, RAISING MONEY FOR THE SCHEME WILL NOT BE EASY AND SUPPLIER CREDIT WILL BE A MOST IMPORTANT ELEMENT IN THE FINANCING. I AM ASSURED THAT ALTHOUGH THE TENDER PERIOD FOR ELECTRICAL AND MECHANICAL CONTRACTS IS SHOWN AS SPREAD OVER A LONG PERIOD, THIS WILL IN FACT BE DONE IN SUCH A WAY THAT TENDERERS CAN SUBMIT PROPOSALS FOR A PACKAGE AS WELL AS INDIVIDUAL CONTRACTS. ON THE ASSUMPTION THAT THE LARGER THE PACKAGE, THE MORE ATTRACTIVE THE CREDIT TERMS, IT WILL PROBABLY BE WISE TO GO FOR A PACKAGE AS WELL AS CONSIDERING BIDS FOR
INDIVIDUAL CONTRACTS.
(111) LOCAL PARTICIPATION, WHERE POSSIBLE, WILL BE HELPFUL GIVEN PRESENT DEPRESSEED ECONOMIC CONDITIONS IN HONG KONG.
2. I HAVE, IN ANOTHER CONTEXT, MENTIONED TO CRE4 THE POSSIBILITY
OF A BRITISH COMPANY ESTABLISHING A PLANT HIRE ORGANISATION IN HONG
KONG AGAINS THE BACKGROUND OF THE MASSIVE PUBLIC SECTOR BUILDING
PROGRAMME, WE HAVE, AT THE REQUEST OF GILMANS, ONE OF THE INCHCAPE GROUP COMPANIES IN HONG KONG, INSERTED AN EIS NOTICE ASKING BRITISH PLANT HIRE FIRMS TO CONTACT THEM WITH A VIEW TO A JOINT VENTURE. PLANT HIRE WOULD BE SOMETHING NEW TO HONG KONG, BUT MASS TRANSIT WITH THE DEMAND IT WILL BRING FOR PLANT, TOGETHER WITH FOREIGN CONTRACTORS ACCUSTOMED TO HIRING PLANT, COULD PROVIDE THE NECESSARY CONDITIONS TO GET PLANT HIRE ESTABLISHED HERE WITH A STEADY INITIAL DEMAND. THE EIS NOTICE MAY NOT ATTRACT SUFFICIENT ATTENTION. WOULD YOU CONSIDER AN APPROACH TO THE MAJOR COMPANIES IN BRITAIN TO DRAW THEIR ATTENTION TO THE POSSIBILITIES? THEIR CONTACT SHOULD BE GM BOURNE, MANAGING DIRECTOR, INCHCAPE EXPORT LTD.
KINNEAR
0