RESTRICTED
79
162034
MDLIAN 2254
RESTRICTED
FM BTC HONG KONG TO PRIORITY DTI
TELNO OTTER 269
OF 050105Z DECEMBER 90
AND TO ROUTINE PEKING
DTI FOR GALLAHER, PEP3
Mh.C 121/2
N
FROM KERFOOT
2/12
GUANGZHOU METRO PROJECTS
1. CURRIE AND I MET JIN FENG, DIRECTOR OF GUANGZHOU UNDERGROUND RAILWAY PREPARATORY OFFICE IN GUANGZHOU ON 30 NOVEMBER.
2. JIN HAD JUST RETURNED FROM PEKING WHERE APPROVAL FOR THE
PROJECT HAD BEEN GIVEN EARLIER IN THE WEEK BY STATE COUNCIL.
3. STATE COUNCIL APPROVAL IS FOR THE FIRST STRETCH OF LINE 12.7 KM INCLUDING RIVER TUNNEL. FOREIGN AID REQUIRED FOR CONSTRUCTING THIS STRETCH WAS PUT AT USD 300 MILLION. WORK WAS EXPECTED TO BEGIN IN 1993. INVITATIONS TO TENDER WERE TO BE PRIVATE, WITH PREQUALIFICATION ISSUING IN JANUARY. PROJECT TO BE DIVIDED INTO 11 PARTS, WHICH MAY BE CONSOLIDATED INTO A SMALLER NUMBER AS INVOLVEMENT OF FOREIGN COMPANIES BECOMES CLEARER.
4. JIN REFERRED TO EARLY CLOSE CONTACTS BETWEEN PROJECT AND UK COMPANIES WHICH HAD FALLEN OFF IN RECENT YEARS. FRENCH CONTACTS HAD BEEN CLOSE SINCE 1987. BUT HE WAS AT PAINS TO EMPHASISE THAT
THERE WAS NO COMMITMENT TO THE FRENCH.
5. KERFOOT ASKED WHETHER MOFERT HAD BEEN APPROACHED ON THE QUESTION OF CONCESSIONARY FINANCE. JIN SAID THAT THE STATE
PLANNING COMMISSION WOULD SUBMIT THE PROJECT TO MOFERT SOON. KERFOOT SAID THAT THE MATTER COULD BE GIVEN CAREFUL CONSIDERATION
ONCE RAISED WITH THE UK SIDE BY MOFERT.
6. FULL RECORD FOLLOWS BY BAG. THE PREPARATORY OFFICE ARE LOOKING FOR EARLY APPROACHES FROM FOREIGN COMPANIES: IT WOULD BE HELPFUL TO KNOW THE CURRENT INTENTIONS OF UK FIRMS AS SOON AS POSSIBLE.