GK 265
IMMEDIATE
CYPHER/CAT A
CONFIDENTIAL
HKK 84/
W23)
PA
Copied to the Ashwood, with whom? sports, 70/
Mr Quastrill
N Uptosh for action on X please
835 of ICI of the decision I did not give him to the contents of paras.
I have told Mr Brodie
FM HONG KONG 2610212
CONFIDENTIAL
! +2.
I.C.I. may decide
TO IMMEDIATE F.C.O TELNO.662 OF 26 MAY 78. to protest to the Sofs
YOUR TELNO.417: EXPLOSIVES PLANT.
to
for Trade with a
to Lord G.R. coppy Place warn of I
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1. THE EXECUTIVE COUNCIL WAS MUCH INFLUENCED BY THE LAST SENTENCE
OF THE REPORT OF THE CHIEF EXPLOSIVES OFFICER, AND BY THE GREATER EXPERIENCE OF THE LOCAL USE OF SMALL DIAMETER TOVEX THAN OF IREMITE (SEE PARAS C9, 13 AND 15 AND D2 OF ANNEX F OF XCC(78/43)), AND BY THE RELUCTANCE OF THE SPECIAL TENDER BOARD TO RECOMMEND 1.C.l (SEE PARA.11 OF ANNEX G).
solu
2. AGAINST THIS BACKGROUND THE COUNCIL'S VIEW WAS THAT THE BALANCE
WAS SIGNIFICANTLY IN DU PONT'S FAVOUR UNLESS THERE WERE OVERRIDING POLITICAL OR SECURITY OBJECTIONS, AND THIS COULD NOT BE SAID TO BE THE CASE. THE COUNCIL THEREFORE FELT THAT THE ACCELERATION OF THE REPLACEMENT OF DYNAMITES BY WATER-GEL TYPE EXPLOSIVES, WOULD
BE BETTER SERVED BY DU PONT AND THE TENDER WAS AWARDED ACCORDINGLY.
3. IN GENERAL WITH MUCH EFFORT ON ALL OUR PARTS, BRITISH FIRMS HAVE DONE WELL RECENTLY IN COMPETING FOR PUBLIC AND QUASI-PUBLIC TENDERS IN HONG KONG INVOLVING THE BACKING OF THE GOVERNMENT. 1 VERY MUCH HOPE THAT THIS SUCCESS WILL CONTINUE: E.G IN THE M.T.R EXTENSION AND K.C.R ELECTRIFICATION, BUT THEY CANNOT EXPECT TO WIN EVERY TIME, AND NOTHING WOULD BE MORE LIKELY TO PREJUDICE THEIR EXCELLENT PROSPECTS THAN INTERVENTION IN THIS CASE ON
POLITICAL GROUNDS.
4. I TRUST THAT IN ANY CORRESPONDENCE WITH 1.C. YOU WILL NOT
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REVEAL THE CONTENTS OF PARAS.1 AND 2 WHICH ARE CONFIDENTIAL TO THE EXECUTIVE COUNCIL. INCIDENTALLY THERE IS NOTHING TO STOP 1.C.1 FROM CONTINUING TO COMPETE IN THIS MARKET WITH IMPORTED
PRODUCTS.
15.