CONFIDENTIAL
FM BTC HONG KONG
TO DESKBY 09130OZ FCO
TELNO 10
CONFIDENTIAL
HKB C26 13
RECEIVED IN 20
TRY
15 JAN1990
37
176522
MDHIAN 1723
"RY
COPY
OF 09110OZ JANUARY 90
AND TO IMMEDIATE DTI
DESK OFFICEN INDEX
A
Con Taken
FOR PAUL, HKD
DTI FOR ADAMS PEP
MY TELNOS 2, 3 AND 8 AND MY LETTER OF 19 DECEMBER TO MACLAREN: TRADE WITH HONG KONG AND THE SECRETARY OF STATE'S VISIT
SUMMARY
1. THE RECENT DECISION BY THE HONG KONG GOVERNMENT TO SHORT LIST FIVE AMERICAN COMPANIES AND ONE EACH FROM FRANCE, HOLLAND AND JAPAN, TO THE EXCLUSION OF ALL BRITISH COMPANIES, IN THE FIRST SIGNIFICANT CONTRACT IN THE 10 BILLION POUNDS AIRPORT PROJECT, IS SUFFICIENTLY DISTURBING THAT I SUGGEST IT MIGHT BE RAISED DURING
THE SECRETARY OF STATE'S VISIT.
DETAIL
2. BRIEFING FOR THE SECRETARY OF STATE'S VISIT AS DETAILED IN YRTELNO 42 INCLUDES MAJOR PROJECTS (BRIEF M), THE AIRPORT (BRIEF P) AND THE U K-HONG KONG TRADE (BRIEF N). I DO NOT KNOW WHAT LINE WILL BE TAKEN IN THESE, BUT OFFER THE FOLLOWING COMMENTS ON RECENT DEVELOPMENTS, INCLUDING THE REPORTED PRESSURES BY THE UNITED STATES TO STEER CONTRACTS THEIR WAY ON THE AIRPORT PROJECT (MY FIRST TUR).
3. THE HONG KONG GOVERNMENT FREQUENTLY SAYS, AND I HAVE REPORTED IT MANY TIMES, THAT THERE WILL BE NO SPECIAL FAVOURS FOR BRITISH COMPANIES IN THE AIRPORT PROJECT OR ELSEWHERE. I SUGGEST THAT THIS COULD BE CHALLENGED. AS DETAILED IN MY LETTER TO MACLAREN, THERE HAVE BEEN RECENT OCCASIONS WHERE IT SEEMS REASONABLE THAT ACCOUNT COULD BE TAKEN OF THE BRITISHNESS OF SOME OF THE CONTESTANTS FOR
CERTAIN CONTRACTS.
4. OF CURRENT CONCERN IS THE ANNOUNCEMENT REPORTED IN MY TELNO 2 THAT NO WHOLLY BRITISH FIRM OR PARTNERSHIP IS THOUGHT WORTHY OF INCLUSION IN A SHORT LIST OF EIGHT FOR THE CONSULTANCY FOR THE AIRPORT MASTER PLAN. CHALCROW OF THE UK ARE INCLUDED WITH BECHTEL OF THE U.S.A. AS ONE OF THE EIGHT, BUT BECHTEL ARE SO LARGE AND SO GOOD THAT HALCROWS' PART WILL SURELY BE MUCH THE SMALLER). SEVERAL
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CONFIDENTIAL