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PETER HUTCHINSON. COSTAIN HAVE NOT BEEN INACTIVE. THEY HAVE
APPROACHED BALFOUR BEATTY, WIMPEY, LAING AND TAYLOR WOODROW WITH A VIEW TO FORMING A PROJECT MANAGEMENT CONSORTIUM WHICH
PROBABLY WOULD ALSO INJECT SOME EQUITY INTO THE PROJECT ALONG
WITH HOPEWELL, THE PRC GOVERNMENT AND PERHAPS THE HONG KONG
GOVERNMENT. COSTAINS ARE WILLING TO TALK TO OTHER CONTRACTORS
AND EQUIPMENT SUPPLIERS BUT IN ADVANCE OF A DECISION BY THE
HONG KONG GOVERNMENT TO ALLOW THE PROJECT TO PROCEED IN SOME
FORM DO NOT WISH TO BEGIN DETAILED TALKS WITH OTHER SUPPLIERS.
4 WE HAVE BEEN APPROACHED BY TRAFALGAR HOUSE WHO HAVE AN
INTEREST IN SUPPLYING THE BRIDGING AND HAVE ASKED FOR OPF SUPPORT.
I HAVE TOLD THEM THAT WE SHALL WANT A UK PLC APPROACH AND ARE
NOT WILLING TO EXTEND OPF ON A FRAGMENTED BASIS. RELATIONS
BETWEEN COSTAINS AND TRAFALGAR HOUSE ON THE OVERSEAS FRONT
ARE NOT PARTICULARLY GOOD AND PROBABLY NOT HELPED BY APPROACHES
WHICH FLETCHER AND IAN MACGREGOR MAY HAVE MADE TO GORDON WU.
I AM RATHER CONCERNED AT THE IMPLICATION IN YOUR TELEGRAM THAT
WU MIGHT WISH TO HEAR FROM BRITISH CONTRACTORS AND
SUPPLIERS RATHER THAN DIRECTING ENQUIRIES THROUGH COSTAIN AND
THEIR PARTNERS HERE. WU, OF COURSE, WANTS THE BEST DEAL AND
IF BRITISH INDUSTRY IS NOT COMPETITIVE WILL NO DOUBT FOLLOW
THE PATTERN OF THE SHAIJAO PROJECT USING HOPEWELL/COSTAIN PROJECT
MANAGEMENT AND JAPANESE EQUIPMENT. COSTAIN ARE KEEN THAT THE
BRITISH GOVERNMENT SHOULD GIVE WU AN EARLY ASSURANCE THAT A
CREDIBLE UK CONSORTIUM IS FORMING AND ENJOYS BRITISH GOVERNMENT
SUPPORT. I AGREE THERE COULD BE ADVANTAGE IN OUR GIVING WU
SUCH AN ASSURANCE PERHAPS IN THE FORM OF A LETTER FROM YOU
TO HIM. IT WOULD NECESSARILY HAVE TO BE COUCHED IN FAIRLY
GENERAL TERMS AND COULD NOT PRE-JUDGE THE POSSIBILITY OF FURTHER OPF SUPPORT OR, AND THIS ULTIMATELY WILL BE AN IMPORTANT ASPECT, ECGD'S ATTITUDE TO A LIMITED RECOURSE PROJECT. IF IT IS TO
BE OF ANY VALUE, WU WOULD WANT TO SHOW SUCH A LETTER TO THE HONG KONG GOVERNMENT. HOWEVER, WE WOULD WISH TO AVOID A REPEAT OF PUBLICITY FOLLOWING THE OFFER OF OPF TO OVE ARUP WHICH FORCED THE HONG KONG GOVERNMENT TO TAKE UP A DEFENSIVE POSTURE. I
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