98
00 BTC HONG KONG
GR 150A
CYPHER/CAT A
RECEIVED IN REGISTRY No. 51
·8 OCT 1975
FM DTI 071932Z
RESTRICTED
414
R..
TO IMMEDIATE BTC HONG KONG TEL NO CREDA 180 OF
FOR KINNEAR FROM REDRUP OPG. YOUR CREDA 106. MTA.
a
が ико
[TRED]
103
OCTOBER 1975
1. ALTHOUGH J L KIER AND W AND C FRENCH ARE BOTH WHOLLY OWNED SUBSIDIARIES OF FRENCH KIER HOLDINGS DOE OPINION IS THAT J L
KIER IS A SEPARATE LEGAL ENTITY. SPECIFICALLY J L KIER ARE BOUND BY ASSURANCES GIVEN TO UNDERWRITERS NOT TO GIVE MONEY CUARANTEES TO OTHER FRENCH KIER SUBSIDIARIES. DOE HAVE BEEN ADVISED BY INDEPENDENT ACCOUNTS THAT IF W AND C FRENCH AND CONSEQUENTLY FRENCH KIER HOLDINGS WERE TO FAIL IT IS PROBABLE THAT J L KIER WHOSE ASSETS ARE CHARGED TO THE MIDLAND BANK WOULD WITH THE BANK'S HELP CONTINUE AS A VIABLE CONCERN.
2. KIER SAY THOMPSON IS ALREADY AWARE OF THESE FACTORS BUT YOU
MAY WISH TO REASSURE HIM BY REPEATING THE DOE OPINION IN PARAGRAPH 1. YOU MAY ALSO TELL THOMPSON IN CONFIDENCE THAT LATEST REPORTS AVAILABLE TO DOE INDICATE THAT IN ANY CASE W AND C FRENCH ARE
NOW COPING FAIRLY WELL WITH THE LOSSES THEY HAVE SUFFERED ON THE DOE HIGHWAY CONTRACTS WHICH NECESSI ATATED THE FINANCIAL ASSISTANCE FROM HMG.
3. IER HAVE BEEN UNABLE TO COME TO TERMS WITH BOUYGUES IN THE TIME AVAILABLE BUT HAVE REACHED AN AGREEMENT WITH WADDINGTONS OF THE LILY GROUP FOR A JOINT VENTURE FOR CONTRACT 202 WHICH THEY HOPE WILL SATISFY THOMPSON. THEY ARE INFORMING THOMPSON BY TELEGRAM OF THIS ARRANGEMENT AND SUGGEST THAT YOU MIGHT ALSO MENTION IT TO HIM.
4. ECGD WILL REPLY ON POINTS RAISED IN YOUR EXCED 60 ABOUT THE STEP PROCEDURE.
96
CALLAGHAN
INN