CONFIDENTIAL
063533
MDLIAN 7207
AUGUST. IN CHOOSING THOSE TO BE PRE-QUALIFIED PRIORITY WOULD BE GIVEN TO QUALITY OF MANAGEMENT AND A PROVEN ABILITY TO PERFORM ON PRICE AND TIME. THE CONTRACT WOULD NOT NECESSARILY GO TO THE LOWEST BID. THE AMOUNTS OF DREDGING, AND ROCK TO BE MOVED, WOULD STRETCH ALL RESOURCES.
5. THE PAA WOULD PRE-ORDER EARTH-MOVING EQUIPMENT TO A VALUE OF USD (SIC) 40 - 50 MILLION, APPROXIMATELY ONE THIRD OF THE TOTAL REQUIRED, AND THE WINNING CONSORTIUM WOULD THEN BE REQUIRED TO TAKE THIS OVER. THIS WILL INCLUDE DUMP TRUCKS (170 - 200 TONS), LARGE DIAMETER DRILLS, CRANES, AND VERY LARGE BULLDOZERS. WE AGREED THAT THE UK DID NOT HAVE MUCH TO OFFER IN THESE AREAS EXCEPT CRANES. THE CRANES WOULD BE REQUIRED PRIMARILY FOR THE ASSEMBLING OF THE TRUCKS WHICH WILL BE TOO LARGE TO BE SHIPPED COMPLETE. (COMMENT: THIS PLAN TO PRE-ORDER EQUIPMENT IS NEW TO US: BRITISH SUPPLIERS PARTICULARLY OF CRANES, SHOULD BE ALERTED, AND ADVISED WE WILL BE HAPPY TO HELP.)
6. IN THE TENDERING FOR THE PLATFORM CONTRACT THEY WOULD BE LOOKING FOR FINANCE PROPOSALS FOR UP TO HKD 2 BILLION. IT WAS THE FINANCIAL ASPECTS WHICH WERE NOW A MAJOR CONCERN, AND ON WHICH ALLEN SAID HE WOULD WISH TO CONCENTRATE WITH MINISTERS IN LONDON. THERE WOULD BE NO GOVERNMENT GUARANTEES FROM HONG KONG. LENDING WOULD BE AGAINST THE PROJECT ON A COMMERCIAL RISK BASIS. HIS VISITS TO TOKYO AND LONDON WOULD BE PRIMARILY TO GIVE AN OVERVIEW OF THE PROJECT AND TO ENCOURAGE FINANCIAL SUPPORT.
AIRPORT DESIGN
7. PRE-QUALIFICATION FOR THIS CONTRACT WOULD CLOSE LATER THIS MONTH. THEY WERE LOOKING FOR ENGINEER-LED RATHER THAN ARCHITECT- LED GROUPS. THE MASTER PLAN WOULD ALLOCATE SPACE BUT WOULD NOT ATTEMPT DESIGN WORK. ALLEN SAID HE DID NOT WANT AN EXPENSIVE, EXOTIC, STATE-OF-THE-ART DESIGN FOR THE TERMINAL. THE ARCHITECTURE SHOULD REFLECT HONG KONG. MOST PEOPLE ONLY SAW THE INSIDE OF TERMINAL BUILDINGS: HE THOUGHT THAT LHR TERMINAL FOUR A FAILURE IN THIS RESPECT. FOR THIS CONTRACT A PROVEN ABILITY TO WORK WITHIN A BUDGET WAS THE PRIMARY FACTOR. I SAID THAT I KNEW BAA TO BE PLANNING TO COMPETE, AND THAT I HAD HEARD THEY WERE THINKING OF USING NORMAN FOSTER. ALLEN REACTED NEGATIVELY TO THIS, SAYING THAT FOSTER WAS REMEMBERED IN HONG KONG FOR THE COST AND TIME OVER-RUN ON THE HONGKONG AND SHANGHAI BANK BUILDING BAA HAD ALREADY BEEN AWARDED TWO SMALL CONSULTANCIES AND SIR JOHN EGON WOULD BE IN HONG KONG FROM 11 13 OCTOBER. (COMMENT: THIS IS ANOTHER IMPORTANT CONTRACT WHICH A NUMBER OF BRITISH
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