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94

17 JUL

pary 1977

Masedan

Miss Marsden HD

PS/Mr Maude

Maude

Thank

you

has issued

Л

Tes

HONG KONG AIRPORT PROJECT

FROM: R M Marsden

Hong Kong Department

DATE: 17 July 1990

cc: Mr McLaren

18/7

НКС 18212.

RECEIVED IN BECICTA

0 1 AUG 1990

и

A

1.

It was agreed at Mr Maude's meeting with Sir Gordon Manzie on 11 July that the Embassy in Tokyo should now speak

to Mitsui about the prospects for the Anglo/Japanese

consortium, followed up by a low key approach to MITI and

the MFA. I submit a revised telegram to Tokyo with

instructions on the line to take with the Japanese. The

telegram has been cleared with the DTI.

seen and approved by Mr McLaren.

It has also been

MAXAGO/1

Roseline Hand

RM Marsden

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File.

HONG KONG AIRPORT PROJECT: MR MAUDE'S MEETING WITH SIR

GORDON MANZIE, 11 JULY

Those present:

Mr Maude

Mr McLaren

Mr Paul, HKD

Miss Marsden, HKD

Mr Gallaher, DTI

HKC 182 12

SECRIVER IN

17 JUL 1990

hairman

Sir Gordon Manzie, chairman of Anglo-Japanese Construction Ltd Mr J Carlisle, Trafalgar House

1. Sir Gordon Manzie said that Mitsui were still having difficulties in lining up the other Japanese players. For this reason the UK members of the consortium were now in direct contact with Nippon Steel. He would be meeting Nippon Steel himself later the same day. Although Nippon Steel still claimed to be keen on collaboration, they appeared not to be interested in a pre-emptive bid because they wanted time to do their own design studies. It was possible that they were also reluctant to commit themselves until there had been more positive political signals from

Peking.

2.

The UK members of the consortium had now completed their pre-emptive bid and wanted to put pressure on Nippon Steel to demonstrate that they were serious about collaboration. Even if the consortium could not put in a pre-emptive bid, it was essential that they should be able to respond rapidly when the Hong Kong Government issued tender documents in September. If the Hong Kong Government saw that the Anglo-Japanese consortium was the most serious contender and

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that all the main players were on board, they might be receptive to the idea of a negotiated bid. On present plans, detailed bids would all have to be submitted by

February 1991 with a view to awarding contracts in December

1991. In the consortium's view, however, this timetable was

far too slow if the Hong Kong Government wanted the bridge

to be in place by 1996.

3. Sir Gordon Manzie said that it would be helpful if the Embassy in Tokyo could now speak to MITI to convey HMG's disappointment at lack of progress. In talking to the Japanese, a certain element of bluff might be necessary as

far as our leverage on the Hong Kong Government was

concerned. Mr McLaren said that we would be as forthcoming

as we could on this point. But Sir John Whitehead had

expressed some doubts as to whether MITI or the MFA would

wish to get involved on our behalf. Sir Gordon Manzie

emphasised that there was no point in speaking to Mitsui alone, who appeared to be a broken reed.

4. Mr Maude said that we were ready to help through diplomatic channels when the time was right. Sir Gordon Manzie said that it would be helpful if the Embassy in Tokyo could have a quiet word with MITI and the MFA as soon as

possible. Mr Gallaher said that the DTI were concerned that things were drifting. Mitsui had assured Mr Ridley in May

that they had Nippon Steel on board. It might help to try

to boost Mitsui's confidence if we made clear that the

consortium had the full support of HMG.

5.

Sir Gordon Manzie added that it would also be useful to

know what importance the Japanese attached to the PRC's

attitude. Mr Maude said that we should know more about this

after his own visit to Peking.

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