RR HONG KONG
GR 200
CYPHER CAT A
FM ECGD 281630Z
CONFIDENTIAL
RECEI REAK
7 HKLOD
[TRED]
125
- 1 DECINS
tikk 21/4
TO ROUTINE HONG KONG TELNO 059 OF 28 NOVEMBER.
FOR KINNEAR FROM KEMP
REF
12x+
MASS TRANSIT PROJECT. THOMPSON CALLED ON 26 NOVEMBER. HE DESCRIBED HOW THINGS NOW STOOD AND HIS EXPECTATIONS FOR FUTURE TIMINGS.
HE SAID THAT THE LINK KIERS WERE PROPOSING WITH GAMMONS WOULD BE ACCEPTABLE TO HONG KONG AUTHORITIES AND THUS MAKE KIERS SERIOUS CONTENDERS FOR FUTURE CIVIL WORKS CONTRACTS. AS FAR AS THE CO-ORDINATED PRESENTATIONS FOR THE E AND M CONTRACTS WERE CONCERNED, THOSE FROM GEC AND THE JAPANESE HAD CREATED THE BEST IMPRESSION. HOWEVER, I WAS LEFT WITH THE FEELING THAT THESE CONTRACTS WERE UNLIKELY TO BE AWARDED TO ANY SINGLE TENDERER AND WOULD PROBABLY BE SPLIT AMONGST THREE OR MORE. THOMSPON EXPRESSED HIMSELF GENERALLY SATISFIED WITH OUR CREDIT TERMS, FOLLOWING THE REMOVAL OF THE SLIDING SCALE. HE RAISED THREE POINTS ON WHICH HE WOULD STILL LIKE IMPROVEMENTS. TWO OF THESE WERE RATHER DETAILED MATTERS CONCERNING THE CREDIT AGREEMENT, WHICH DO NOT SEEM LIKELY TO PROVE INTRACTABLE. THE THIRD WAS THE QUESTION OF 100% STERLING FINANCING. THOMPSON WOULD LIKE AUTHORITY TO RAISE FRONT END FINANCE FOR THE 15% OF ORDERS PLACED IN THE UK NOT COVERED BY OUR CREDITS BY BORROWING IN THE LONDON MARKET. FAILING THIS, HE WOULD LIKE TO REOPEN THE QUESTION OF FINANCE FOR LOCAL COSTS. IN VIEW OF KIERS RENEWED INTEREST IN FUTURE CONSTRUCTIONAL CONTRACTS, WE WILL RAISE THIS AGAIN AS A PRIORITY MATTER AND LET YOU KNOW IF FURTHER IMPROVEMENTS IN OUR CREDIT TERMS ARE POSSIBLE.
CALLAGHAN
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