JG5AGB
dti
the department for Enterprise
3. I agree that we should look carefully at cooperation in environmental projects and in Eastern Europe. Let us air this in discussion with companies, with OT3 and in our own consideration of the environmental dimension.
C.C.W. Adams
CC W ADAMS
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AIRPORT PROJECT: FURTHER DEVELOPMENTS
1. PROJECT MANAGEMENT (OR PROGRAMME MANAGEMENT AS THE HONG KONG GOVERNMENT ARE NOW CALLING IT). BECHTEL HAVE TODAY, 13 MARCH, BEEN TOLD THAT THEY ARE FRONT RUNNERS AND HAVE BEEN INVITED TO OPEN NEGOTIATIONS WITH THE HKG ON 22 MARCH. SO FAR AS THEY ARE AWARE THERE WILL BE NO PARALLEL NEGOTIATIONS WITH ANY OTHER CONTENDER. THIS DEVELOPMENT IS NOT YET PUBLIC KNOWLEDGE.
2. MASTER PLAN CONSULTANCY: THE 8 SHORT LISTED CONTENDERS (NOW 7 SINCE THE FRENCH AND JAPANESE HAVE MERGED INTO ONE GROUP) HAVE BEEN INVITED TO MAKE PRESENTATIONS IN THE WEEK BEGINNING 19 MARCH. BECHTEL ARE ASSEMBLING A STRONG TEAM INCLUDING SENIOR PEOPLE FROM HALCROW AND FROM THE CAA. AUSTIN OF THE USA WHO HAVE ACER FREEMAN FOX AND OTHER BRITISH ELEMENTS IN THEIR TEAM ARE ALSO ASSEMBLING IN STRENGTH. THEY HAVE BEEN TO SEE ME AND HAVE EMPHASISED THAT SHOULD THEY BE SUCCESSFUL SOME 30 OR 40 PERCENT OF THE WORK WILL GO TO BRITISH COMPANIES.
3. I HAVE CALLED ON LARRY YUNG, HEAD OF CITIC IN HONG KONG, INTER ALIA TO SOUND HIM OUT ON HIS AND THE CHINESE OFFICIAL ATTITUDE TO THE PROJECT. HE SAID THAT HAVING RECENTLY TAKEN VERY SUBSTANTIAL STAKES IN DRAGONAIR/CATHAY PACIFIC AND IN HONG KONG TELEPHONE (CABLE AND WIRELESS), THEY WERE NOT ACTIVELY THINKING ABOUT ANY FURTHER MAJOR INVESTMENTS IN THE SHORT TERM: THEY FIRST NEEDED TO DIGEST THESE. MOREOVER SO FEW DETAILS ABOUT THE PROJECT, AND PARTICULARLY ABOUT ITS FINANCIAL VIABILITY, ARE YET KNOWN, THAT IT IS IMPOSSIBLE TO KNOW WHETHER IT IS AN ATTRACTIVE INVESTMENT. HE SAID THE CHINESE GOVERNMENT WERE WORRIED THAT THE AIRPORT WAS TOO AMBITIOUS A PROJECT THAT WOULD DEPLETE HONG KONG'S RESERVES AND WHICH MIGHT INVOLVE THEM, THE PRC, IN LIABILITIES POST 1997: THEY WOULD DOUBTLESS MAKE A FULLER EVALUATION WHEN MORE DETAILS BECAME KNOWN.
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