CONFIDENTIAL

If a

The last study is due to be completed in late 1981.

decision is then made to go ahead (contingent on the building

Cleveland

of the airport at Chek Lap Kok and industrialisation of Northern

Lantau) construction tenders could be issued in 1982.

Bridge and Redpath Dorman Long hope to compete for this work.

Water Supply Scheme

12.

Hong Kong Government has invited firms to prequalify for two

water conveyance systems from the Chinese border to a reservoir

in the New Territories. Four British firms, E Nuttall,

FJC Lilley, Keir International and Tarmac International have

prequalified for the second contract, which requires the provision

of 13 km of tunnel and pipeline.

Hong Kong and Shanghai Bank (HKSB) Bid for Royal Bank of Scotland (RBS)

13. The HKSB and the Standard Chartered Bank have made bids for

the RBS of Scotland. Both of these were referred on 1 May 1981 by

the Secretary of State for Trade to the Monopolies and Mergers

Commission (MMC) which reported to him just before Christmas.

14. The report will be confidential until publication, which will

be arranged as quickly as is practicable and no later than the

third week in February. The reference implied no prejudice against

either bid or any presumption that either merger would operate

against the public interest. The bids do however raise important

issues of public interest which need examination by an independent

quasi-judicial body. It is now for the MMC to consider all aspects of the public interest, and it would not be appropriate (eg because

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