COMMERCIAL IN CONFIDENCE
8.
The one possible area where we might win something back for the UK is in the overhead collection system hitherto supplied by Siemens. But I think that to do so we shall really need personal interest at the most senior level within BICC to ensure that Balfour Beatty handle their approach to the MTRC properly. I think you will be aware of the background to their disappointment at their failure to land contracts for the civil engineering work at Argyle Station for the Tsuen Wan extension. While that should be past history, I have a fear that there lingers within the Balfour Beatty organisation a failure to recognise that the MTRC operates as an international corporation and that they must therefore accept the most financially advantageous bids available from a variety of overseas sources. But there is no bias against the United Kingdom (all my experience with the modified initial system and the Tsuen Wan extension reflects the contrary) and I believe that if Balfour Beatty go whole-heartedly for contracts both on construction and for the overhead collection system they stand a reasonable chance of success.
9. I shall of course send off EIS notices promulgating the tender dates as soon as they are announced publicly but there is no objection to you using the information in this letter in confidential discussions with the major British suppliers involved. In addition to the marker put down in paragraph 6 of my letter of 19 December about ECGD finance, I have two further suggestions for trying to ensure that UK industry makes a major effort to capture some of the new Island Line contracts:-
a) a visit to the UK by myself to talk personally to Chairmen or Managing Directors of major construction firms (Taylor-Woodrow, Wimpey, Costains, Laing, Henry Boot, Mowlems etc) in order to brief them off the record on up-to-date MTRC thinking.
As you may be aware, I am currently arranging (with CRE 4/2 and the DOE) a visit to the United Kingdom in mid-February (February 17-19) by Donald Liao, Hong Kong's Secretary for Housing, whose aim is to spark an interest by British civil engineering firms in Hong Kong's massive housing programme. It occurs to me that as he will no doubt be meeting the kind of senior people who we need to interest in the Island Line project, it may be helpful if I had approval to accompany him to publicise the Island Line as well as the housing opportunities. A possible further reason for a brief visit to London at that time is the British bid for the Castle Peak Power Station due to be delivered to China Light and Power Company on 31 January. It may be useful to MEE Division to have a personal indication of the kind of response which our offer has engendered among the CLP senior management.
Would you like to think about this, perhaps discussing it with Christopher Benjamin and Gordon Manzie. If a visit seems necessary, I shall have to make my dispositions with the FCO.
b) I think that given the former problem with MTRC/Balfour Beatty relations to which I have referred in paragraph 8 above, it may be helpful if Sir Raymond Pennock, the Chairman of BICC whom I know to be personally interested in major projects in Hong Kong, was able to pay a brief visit here for informal discussions with Norman Thompson and Eric Black. I am quite prepared to write to Sir Raymond personally to suggest this
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