CONFIDENTIAL
176522
MDADAN O0937
BRITISH CONSULTANTS AND CONTRACTORS HAVE SAID TO ME THAT IF ANY OF
THE FIVE SHORT LISTED AMERICAN FIRMS GET THE JOB, THEN RECOMMENDATIONS AND SPECIFICATIONS WILL BE WRITTEN SO AS TO GIVE U.S. FIRMS CONSIDERABLE ADVANTAGES IN THE NEXT STAGES. THE CHOICE OF THAT SHORT LIST MUST HAVE BEEN VERY SUBJECTIVE. NONE OF THE COMPETING FIRMS HAD BEEN ASKED FOR DETAILED PROPOSALS. THAT COMES NEXT. NOR COULD THE HONG KONG GOVERNMENT CLAIM THAT BRITISH COMPANIES HAD NOT MADE A SERIOUS EFFORT. ON THIS OFFICE'S RECOMMENDATION, BRITISH AIRPORT SERVICES LTD (BASL) (THE INTERNATIONAL ARM OF THE BRITISH AIRPORT AUTHORITY) SENT A VERY HIGH POWERED TEAM OF FOUR, LED BY BAA'S INTERNATIONAL DIRECTOR AND THE GENERAL MANAGER, FOR A PRESENTATION, ON 7 SEPTEMBER, TO THE FINANCIAL SECRETARY, SECRETARY FOR ECONOMIC SERVICES, SECRETARY FOR TRANSPORT, SECRETARY OF CIVIL AVIATION, SECRETARY FOR THE TREASURY AND MANY MORE. I WAS PRESENT. THE PRESENTATION LASTED A COUPLE OF HOURS AND WAS TOTALLY PROFESSIONAL. THERE WERE CLEARLY OTHER BRITISH CONTESTANTS OF GOOD QUALITY, ALTHOUGH UNLIKE BASL THEY DID NOT WORK THROUGH US AND WE ARE SHORT OF DETAILS. ONE WE KNOW OF WAS SCOTTISH CONSULTANTS LTD WORKING WITH THE REPUTABLE BRITISH
ARCHITECTS RMJM.
5. THIS OUTCOME MAKES ME RECALL SIR PIERS JACOBS' (FINANCIAL SECRETARY) ADMISSION, REPORTED IN MY TELNO OTTER 267 OF 14 DECEMBER, THAT BRITISH FIRMS COULD EVEN BE AT A DISADVANTAGE WHEN APPLYING FOR THE MAJOR HONG KONG GOVERNMENT CONTRACTS.
6. WE KNOW THAT THE AMERICANS APPLY HEAVY GOVERNMENT PRESSURE TO
HELP WIN THESE CONTRACTS. MY TELNO 8 REPORTS THE LATEST MANIFESTATION. MY TELNO 342 OF 3 AUGUST 1989 REPORTED THE EFFORTS OF THE U.S. SECRETARY OF STATE FOR COMMERCE TO LOBBY FOR A U.S.
FIRM IN THE MULTI-MILLION POUND CABLE TV CONTRACTS. THE U.S.
GROUP GOT THE CONTRACT. THAT TELEGRAM ALSO RECOMMENDED
(PARA
I MINISTERS THEN MIGHT TAKE UP THIS ISSUE WITH THE HONG KONG RNMENT. IN THE EVENT ALTHOUGH WE LOBBIED INTENSELY FROM HERE, WE MADE NO MATCHING TOP LEVEL EFFORT TO THAT OF THE AMERICANS.
C
7. TO BE HEAVY HANDED OVER THIS WOULD BE TO RISK OVER REACTION OR COUNTER REACTION FROM THE HONG KONG GOVERNMENT, WHILE IN ANY EVENT THE RESPONSE WILL BE THAT ALL CONTRACTS AND SHORT LISTS ARE DONE ON
STRICT TECHNICAL MERIT.
8. I SUGGEST NEVERTHELESS THAT THE SECRETARY OF STATE COULD SAY TO THE GOVERNOR AND/OR SENIOR MEMBERS OF THE HONG KONG GOVERNMENT
THAT:
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CONFIDENTIAL