CONFIDENTIAL
161033
MDHIAN 2457
HKC 18212
CONFIDENTIAL
FM TOKYO
31A
TO DESKBY 29110OZ DTI
TELNO OTTER 394
OF 290815Z MAY 90
INFO IMMEDIATE BTC HONG KONG (PERSONAL FOR SENIOR TRADE COMMISSIONER) INFO IMMEDIATE FCO (PERSONAL FOR MCLAREN, DUSS)
PERSONAL FOR HEAD OF PEP
A8
52
YOUR TELNO OTTER 305 AND BTC TELNO OTTER 126 :
HONG KONG AIRPORT PROJECT
1. I AM PERFECTLY READY TO SPEAK TO KUMAGAI. I WAS NOT PARTY TO HIS TETE-A-TETE EXCHANGE WITH MR RIDLEY, BUT IF WE WANT TO ADDRESS OURSELVES HERE TO THE JAPANESE WE SHOULD DO SO IN THE FIRST PLACE TO MITSUI. NEITHER MITI
NOR THE MFA WILL WISH TO GET INVOLVED ON OUR BEHALF.
2.
FRANKLY, HOWEVER, I THINK IT WILL BE DIFFICULT TO PERSUADE MITSUI AND THE OTHER JAPANESE COMPANIES TO THING AGAIN UNLESS WE CAN CONVINCE THEM THAT HMG ULTIMATELY HOLDS THE WHIP-HAND ON THE CONTRACT. THE JAPANESE, AS ALWAYS, WILL BE GUIDED BY WHAT THEY PERCEIVE AS THE COMMERCIAL ADVANTAGES
TO THEM AND THEIR RELATIVE BARGAINING POWER.
3. IN SPEAKING TO KUMAGAI, THEREFORE, I WOULD LIKE INSTRUCTIONS AS TO WHAT I CAN SAY ABOUT HMG'S ATTITUDE TO THE ANGLO-JAPANESE CONSORTIUM AND OUR INFLUENCE OVER THE AWARD OF
THE CONTRACT. IN THE FIRST PLACE CAN I SAY THAT HMG INTEND TO GIVE THE ANGLO-JAPANESE CONSORTIUM ITS FULL AND EXCLUSIVE SUPPORT? (I NOTE FROM BTC HONG KONG TELNOS OTTER 92 AND 126 THAT AT LEAST TWO OTHER BRITISH COMPANIES KIER AND WIMPEY CONSIDER THEMSELVES IN THE RUNNING.) SECONDLY, AND THIS IS REALLY THE CRUCIAL POINT, CAN I SAY THAT HMG IS BOTH DETERMINED AND HAS IT IN ITS POWER TO ENSURE THAT THE CONTRACT WILL GO TO AN HMG-SUPPORTED BIDDER WHICH MEANS ONE THAT WILL GIVE
BRITISH COMPANIES THE MAJORITY OF THE WORK? YOUR TELNO OTTER 87 SEEMS TO ME TO HAVE PUT ITS FINGER ON THE PROBLEM WHEN IT
POINTED TO THE RISK THAT THE JAPANESE HAVE DISCOUNTED HMG'S ABILITY SERIOUSLY TO INFLUENCE THE HONG KONG GOVERNMENT OVER
PROCUREMENT.
4.
FINALLY, THERE IS I SUPPOSE THE POSSIBILITY THAT EVEN IF
1
PAGE
CONFIDENTIAL
553
Page 120Page 121