IT
3. I THINK WE SHOULD ENCOURAGE BOTH SIDES TO MEET AGAIN.
SEEMS IMPORTANT FOR MOTT TO ENSURE THAT HE IS ABLE TO DEMONSTRATE
FULL SUPPORT FOR HIS APPROACH BY THE TWO OTHER PARTNERS IN JOINT VENTURE (GAMMON (HK), A SUBSIDIARY OF JARDINE MATHESON, SEEMS TO HAVE LEFT ALL THE RUNNING TO MOTT ALTHOUGH I RECOGNISE
THAT KIER ARE ACKNOWLEDGED AS PROJECT LEADERS) AND TO TRY TO
AVOID PROCEEDING ON THE ASSUMPTION THAT THOMPSON MAY NOT BE
FULLY SUPPORTED BY HIS BOARD OR BY THE HONG KONG GOVERNMENT.
ALL MY ENQUIRIES SUGGEST THAT THE OBSERVATION IN FINAL SENTENCE OF PARA 3(B) OF YOUR TEL UNDER REF IS WIDE OF THE MARK.
4. I ALSO HAVE REASON TO BELIVE THAT THE MTR HAVE IN FACT BEEN
GIVING CONSIDERATION TO SPLITTING CONTRACT 301 OF STAGE 2 TO PERMIT A DECISION IN FAVOUR OF GKL FOR THE COMPLETION OF PRINCE
EDWARD STATION. I THEREFORE SUGGEST THAT THIS, COUPLED WITH
THE EXAMINATION OF MTR'S OFFERS OF ADVANCE PAYMENTS TO EASE GKL'S CASH FLOW PROBLEMS, IS THE BEST AVENUE TO EXPLORE AT PRESENT.
5. I THINK IT COULD BE COUNTER PRODUCTIVE TO SEEK INVOLVEMENT OF HONG KONG GOVERNMENT AS SUGGESTED IN YOUR PARA 3(B)MM THEY WOULD NOT WISH TO PULL THE RUG FROM UNDERNEATH THOMPSON OR TO
ENCOURAGE OTHERS TO DO SO. FURTHERMORE OFFICIAL INTERVENTION ON BEHALF OF THE SOLE BRITISH CIVIL CONTRACTOR COULD PREJUDICE THOMPSON AND, MORE IMPORTANT, HIS BOARD AGAINST AWARD OF FUTURE CONTRACTS TO BRITISH FIRMS IF THEY SUSPECTED THAT H.M.G COULD BRING INDIRECT PRESSURE TO BEAR IN CASES OF CONTRACTURAL DISPUTE.
6. I HOPE YOU CAN SIMILARLY MAKE CLEAR TO MOTT THAT I HAVE
NO WISH TO INTERFERE OR TO TAKE SIDES. I TOLD LIVINGSTORE, WHO SEEMED CONCERNED ON THIS POINT, THAT HAVING BECOME AWARE OF THE DEVELOPMENT OF A DISPUTE WHICH COULD BE DAMAGING TO THE BRITISH IMAGE IN HONG KONG (YOU WILL BE WELL AWARE HOW THE MEDIA HERE CAN TWIST A STORY AGAINST US), IT WAS MY DUTY TO REPORT THOMPSON'S CONCERN TO YOU IN ORDER TO LEARN KIER'S SIDE OF THE ARGUMENT AND TO DO ANYTHING I COULD TO CALM THE ATMOSPHERE FOR A FURTHER ROUND OF DISCUSSIONS. I SHALL OF COURSE BE DELIGHTED TO SEE MOTT IF
HIS RETURN VISIT TO HONG KONG GOES AHEAD.
MARCH
NNNN
1