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012474 MDLIAN 4941

ALLEGED UNSATISFACTORY RECLAMATION WORK WHICH HALCROW DID IN 1961- 64. THEY FEAR THAT IF THE GOVERNMENT DECIDE TO ACCEPT THEM THEY MAY REQUIRE A PARTNER OTHER THAN HALCROW. BECHTEL HOWEVER TELL ME THAT THEY HAVE EVERY CONFIDENCE IN HALCROW WITH WHOM THEY HAVE WORKED CLOSELY ELSEWHERE, AND WHO ARE EXCELLENTLY EXPERIENCED FOR THIS PROJECT.

5. IT BEARS CONSIDERATION WHETHER WE SHOULD MAKE AN OFFICIAL AND

HIGH LEVEL APPROACH TO THE HONG KONG GOVERNMENT, POINTING OUT THAT IT WOULD BE MOST UNFORTUNATE IF THIS SECOND MAJOR CONTRACT TO BE AWARDED IN THE AIRPORT PROJECT DOES NOT CONTAIN A SIGNIFICANTLY BRITISH ELEMENT, BEARING IN MIND THAT THE FIRST (THE PROJECT MANAGEMENT) HAS ALREADY BEEN GIVEN TO A USA FIRM (BECHTEL), AND THAT THIS IS HAPPENING AT THE VERY TIME WHEN PARLIAMENT IS BEING

ASKED TO PROVIDE PASSPORTS FOR HK CITIZENS. THERE IS CERTAINLY A DANGER THAT IF THIS SECOND CONTRACT GOES TO A WHOLLY USA GROUP THEN THE PATTERN MAY BE SET FOR AMERICAN SUCCESSES ALL THE WAY DOWN THE

LINE. MORE-OVER BECHTEL BELIEVE THAT THE COMBINED JAPANESE-FRENCH

GROUP ARE GETTING VERY STRONG SUPPORT FROM THEIR GOVERNMENTS WHICH

COULD ALSO ARGUE IN FAVOUR OF OUR GIVING MORE AUDIBLE SUPPORT TO

BRITISH INTERESTS. I DOUBT HOWEVER WHETHER THERE ARE SUFFICIENT GROUNDS FOR US DOING MORE THAN THE NORMAL LOBBYING FROM HERE. ONE COMPLICATION IS THAT THERE IS NO CLEAR CUT BRITISH INTEREST BEHIND WHICH WE COULD GIVE UNDIVIDED SUPPORT. THE GROUPS LEAD BY AUSTIN, BECHTEL, PARSONS AND TAMS EACH HAVE SOME BRITISH ELEMENTS, PROBABLY

IN THAT ORDER. THE HONG KONG GOVERNMENT FAILED IN ITS ORIGINAL SHORT LIST OF 8 TO INCLUDE ONE BRITISH LEAD GROUP, WHICH IS WHERE THIS BEGAN TO GO WRONG FOR US (SEE MY TELNO 10 IF 9 JANUARY). NEVERTHELESS IF THIS CONTRACT DOES GO TO A GROUP WITH NO BRITISH CONTENT (EG JAPANESE - FRENCH) OR WITH A SMALL BRITISH CONTENT (EG TAMS) THEN WE WILL CERTAINLY HAVE A NURSEABLE GRIEVANCE WHICH WE COULD USE TO TRY TO ENSURE THAT OTHER MAJOR CONTRACTS IN THIS PROJECT (AND NOT JUST THE ONE FIXED CROSSING) GO BRITAIN'S WAY. MEANWHILE I PROPOSE TO TAKE SUCH OPPORTUNITIES AS ARISE TO EMPHASIS TO THE GOVERNOR AND THE SECRETARIES INVOLVED THAT THE MASTER PLAN CONSULTANCY AND ITS EVENTUAL BRITISH COMPONENT IS OF CONSIDERABLE INTEREST AND IMPORTANCE TO US.

HEAP

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