CONFIDENTIAL
FM BTC HONG KONG
TO IMMEDIATE DTI
TELNO OTTER 244
OF 291006Z OCTOBER 90
INFO IMMEDIATE PEKING
CONFIDENTIAL
HKC 182 12
OF.
X Alan
R.M. Ms. Pa
195
010030 MDHIAN 6505
Mr Stone.
DTI FOR ADAMS, HEAD OF PEP
PEKING PERSONAL FOR AMBASSADOR
(180)
M
YRTELNO OTTER 286: HONG KONG AIRPORT PROJECT
1 I CALLED ON SIR DAVID FORD TODAY 29 OCTOBER TO RAISE THE POINTS POSED IN YOUR TUR.
2. SIR D FORD SAID THAT THE DECISION ON WHETHER TO PURSUE A PRE- EMPTIVE BID FOR THE AIRPORT PLATFORM WAS ONE FOR THE GROUP TO DECIDE. HOWEVER THE HONG KONG GOVERNMENT WOULD NOT FAVOUR IT. HE GAVE THREE REASONS:
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(A) COMMERCIAL AND PRACTICAL. THEY COULD NOT CONCEIVE HOW ANYONE WOULD BE IN A POSITION TO PUT IN A REALISTIC PRE-EMPTIVE BID AT THIS STAGE SINCE THE PARAMETERS HAD NOT YET BEEN DEFINED. THEY WERE STILL CONSIDERING WHETHER THE RUNWAY SEPARATION SHOULD BE 1350 OR 1550 M WHICH WOULD HAVE A CONSIDERABLE BEARING ON THE AMOUNT OF RECLAMATION REQUIRED. IT MIGHT BE TWO MONTHS OR SO BEFORE THIS WAS KNOWN SINCE THE PROVISIONAL AIRPORT AUTHORITY HAD ASKED FOR EACH OPTION TO BE FULLY COSTED (THEY WERE NO LONGER CONSIDERING A 900M SEPARATION). MOREOVER, THE HKG WOULD HAVE ITS OWN IDEAS ON HOW THE JOB SHOULD BE DONE AND BEFORE THEY HAD PUBLISHED THESE IN PRE-QUALIFICATION OR BID DOCUMENTS IT WOULD BE UNLIKELY THAT ANY PRE-EMPTIVE BIDDER COULD COMPLY WITH THESE.
(B) POLITICAL. (I) THE CHINESE DIMENSION.
SINCE THE CHINESE PERCEIVED THIS PROJECT AS ONE IN WHICH THE HKG WOULD GIVE ADVANTAGE TO BRITISH COMPANIES, IT WOULD BE EMBARRASSING TO RECEIVE SUCH A BID AT THIS STAGE, PARTICULARLY COMING IMMEDIATELY AFTER THE CHINESE DELEGATION'S VISIT SINCE THE CHINESE WOULD SAY AGAIN THAT THEY HAD BEEN MISLED ABOUT THE PROSPECTS OF SUCH A DEVELOPMENT.
(II) BRITISH DIMENSION.
IT WOULD BE EMBARRASSING TO THE HKG TO HAVE TO REJECT A BRITISH
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CONFIDENTIAL