024616
MDHIAN 1172
CONFIDENTIAL
FM DTI
TO IMMEDIATE TOKYO
TELNO OTTER 401
OF 02170OZ AUGUST 90
INFO ROUTINE BTC HONG KONG
CONFIDENTIAL
Guler
нис 182/2 182/2
RECEIVED IN DE
09 AUG 1990
DESK OF
PADS
hun 4.
FOR HUMFREY FROM ROGERS PEP
HONG KONG AIRPORT PROJECT
APOLOGIES FOR THE DELAY ANNUAL LEAVE ETC) IN RESPONDING TO YOUR TELELETTER OF 11 JULY ON WHAT YOU SHOULD SAY TO OTHER INTERESTED BRITISH CONTRACTORS ABOUT THE HONG KONG AIRPORT PROJECT. I HAVE NOW SEEN TELNO 249 FROM BTC HONG KONG.
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2. THE QUESTION IS EASIER TO ASK THAN TO ANSWER IN DETAIL. I VERY MUCH AGREE WITH HEAP'S GENERAL LINE (HIS TELNO 249): THIS IS BROADLY THE APPROACH WE HAVE TAKEN WITH THE VARIOUS UK FIRMS, INCLUDING WIMPEY, WHO HAVE APPROACHED US ABOUT THE AIRPORT PROJECT. IT IS A VERY LARGE PROJECT. THERE WILL BE ROOM FOR A LARGE NUMBER OF PLAYERS. THE ANGLO/JAPANESE CONSORTIUM BECAME INVOLVED AT A VERY EARLY STAGE: AND WE HAVE BACKED TRAFALGAR HOUSE AND COSTAINS WITH OVERSEAS PROJECT FUND SUPPORT (THOUGH THIS LATTER POINT IS CONFIDENTIAL). BUT WE HAVE BEEN CLEAR WITH THESE TWO COMPANIES THAT THIS IS NOT A GENERALISED SUPPORT COVERING ALL ELEMENTS OF THE PADS PROJECT, BUT SUPPORT WHICH IS FIRM IN RELATION TO THEIR PRIMARY OBJECTIVE THE WINNING OF THE MAJOR FIXED LINK. OTHER UK FIRMS OR CONSORTIA ARE PURSUING CERTAIN OTHER ELEMENTS OF THE PROJECT (EG THE UK AIRPORTS GROUP FOR THE AIRPORT ITSELF): AND THERE REMAIN SOME KEY ELEMENTS WHERE THE POSITION IS NOT YET SETTLED. BUT OUR OVERALL OBJECTIVE IS CERTAINLY TO ENSURE THAT THERE ARE STRONG UK BIDS FOR ALL THE KEY ELEMENTS OF THE PROJECT, AND TO ASSIST IN MAXIMISING THE VALUE WON BY UK FIRMS.
3.
IT IS ALWAYS POSSIBLE TO DEVISE PROBLEM SCENARIOS: FOR EXAMPLE, WHAT WOULD WE DO IF AN ALTERNATIVE UK BIDDER INSISTED ON PURSUING THE FIXED LINK AS WELL? THAT HAS NOT ARISEN THUS FAR WITH THE PADS PROJECT, BUT IT HAS DONE SO ON OTHER PROJECTS BEING PROMOTED BY PEP. IN CIRCUMSTANCES WHERE IT SEEMS CLEAR THAT IT WILL DAMAGE THE PROSPECTS OF UK SUCCESS FOR TWO OR MORE
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CONFIDENTIAL