CONFIDENTIAL

-

Is Mitsui still confident that it will be able to

deliver the other key Japanse players? Have there been any further indications of the attitude of the other Japanese companies concerned?

(Any suggestion that

Mitsui might not be the right Japanese partner for the

consortium is a very sensitive issue, particularly for Mr Fletcher, who was the prime mover in involving Mitsui

in the first place.)

Has there been any progress in resolving the problems over the work share arrangements within the consortium or are the Japanese still pressing for their share of the work to be substantially higher than 50%?

What success has the consortium had in raising funds for the project from British banks? (The UK members of the consortium are hoping that Mitsui will put up the

lion's share of the finance).

- Would it be helpful for Sir J Whitehead to speak to Kumagai (President Designate of Mitsui) and, if so, what

line should he take? Outcome of Sir G Manzie/Mr

Fletcher's meeting with the Japanese Ambassador here on

24 May?

- What progess have the consortium made in putting together a pre-emptive bid and what is the proposed

timing?

July).

(They have previously mentioned late June or

- Are the Hong Kong Government likely to accept a negotiated contract or limited competition in view of the tight timescale for completion of PADS or will they

insist on a full scale open competition?

CONFIDENTIAL

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