ZCZC

HMLNAN 5979

RESTRICTED

OTTER

RR PEKIN

FM HKBTC TO OTTER

120235Z MAY

CRS 600

PESTRICTED

FM BTC HONG KONG

TO PRIORITY DTH

TELNO OTTER 90

OF 120935Z MAY 86

INFO ROUTINE PEKING

NO DISTRIBUTION

THIS TELEGRAM WAS NOT ADVANCED

1018

"File 128

(39

Dīt ue༠)

Enter aidra

(U

ARED

нко FED

BANK OF CHINA BUILDING.

HKK 102/1

RECEIVED IN REGISTRY

1 5 MAY 1986

ER

REGISTRY

Action Taken

MY OTTER 78.

AGB:55.

2. ↑ HAVE MET WITH UPANG SIEN, MANAGING DIRECTOR OF SUN CHUNG AND REVIEWED THE SITUATION. IT WAS A DISAPPOINTING MEETING. HE RECALLED

THAT LAST YEAR GAMMON (TRAFALGAR HOUSE) LOST OUT TO KUMAGAI FOR THE

MAIN CONSTRUCTION (THERE WAS A 20 PER CENT DIFFERENCE IN PRICE) AND

THAT TRAFALGAR HOUSE/RDL LOST THE STEEL CONTRACT TO NIPPON (A 25

PER CENT DIFFERENCE), AS FOP THE CONTRACTS NOW UNDER CONSIDERATION THE LIFTS WERE ALMOST CERTAIN TO GO TO SWITZERLAND (EXPRESS-GEC

WERE NOT AMONG THOSE SHORT-LISTED). HE CONFIRMED THAT THE MECHANICAL

AND ELECTRICAL CONTRACT HAD GONE TO KUMAGA: (DRAKE AND SCULL WERE ABOUT HK DOLLARS 10 MILLION HIGHER). WHEN # SAID DRAKE AND SCULL AND ALSO THE OTHER BRITISH CONTENDER, YAY, WOULD BE OFFERING TO SUB-CONTRACT TO KUMAGAN, HE SAID HE ASSUMED THEY WOULD HAVE TO REDUCE THE IR PRICES TO FIT THE KUMAGA TENDER AND ASKED WHY THEY

HAD NOT ENTERED A MOPE COMPETITIVE BAD IN THE FIRST PLACE.

2. ON THE CURTAIN WALLING HE EXPECTED A FINAL DECISION IN JUNE. THE

FRAMEWORK HAD BEEN SEPARATED FROM THE GLASS. HE THOUGHT A GERMAN FIRM, GARTNESS, WOULD BE SELECTED FOR THE FRAMES. GARTNESS HAD ORIGINALLY OFFERED PILKINGTON GLASS, BUT WHOEVER WON THE FRAME CONTRACT WOULD BE INVITED TO FIT EITHER PILKINGTON OP SPECTRUM (US)

GLASS. THE BANK WOULD BE SATISFIED TECHNICALLY WITH EITHER. THE

DECIDING FACTOR WOULD BE PRICE. HE THOUGHT THE GLASS CONTENT WOULD BE

WORTH APOUT HK DOLLARS 20 MILLION. EMPHASISED THAT THIS LAST

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