ميد

CONFIDENTIAL

063533 MDLIAN 7201

IN NOVEMBER. MACAU WOULD PROBABLY OPEN WELL BEFORE CHEK LAP KOK. ALL THREE AIRPORTS WOULD BE COMPETING FOR THE SAME AIR SPACE. IF THE OTHERS, AND PARTICULARLY THE AIRPORT IN SHENZHEN, WENT THEIR OWN WAY WITHOUT REGARD TO HONG KONG'S NEEDS THIS COULD SIGNIFICANTLY RESTRICT THE NUMBER OF MOVEMENTS THAT CHEK LAP KOK

COULD HANDLE.

PRIVATE SECTOR CONTRACTS

12. THESE WOULD COVER CARGO, CATERING, FUEL AND MAINTENANCE. THEY WILL BE NEGOTIATED NEXT YEAR. THERE WERE SOME VERY BIG JAPANESE GROUPS AND ONE PARTICULARLY POWERFUL AMERICAN GROUP INTERESTED IN THESE, PARTICULARLY THE CARGO SIDE. ALLEN HAD SEEN NO SIGN OF INTEREST BY BRITISH FIRMS. ALTHOUGH THE INITIAL CARGO HANDLING REQUIREMENTS WOULD BE 1.5 2 MILLION TONS THERE WOULD BE A BUILT-IN CAPACITY FOR 9 MILLION TONS SO THE CONTRACTS WOULD BE LARGE. (COMMENT: CLEARLY OUR COMPETITORS ARE ALREADY AHEAD HERE, ALTHOUGH I ASSUME THERE OUGHT TO BE CAPABLE BRITISH FIRMS IN THESE AREAS THAT MIGHT BE ALERTED.)

UK AIRPORT EQUIPMENT GROUP

13. I TOLD ALLEN THIS GROUP WERE PLANNING TO VISIT FROM 25 SEPTEMBER TO 1 OCTOBER. HE SAID IT WAS A GOOD TIME TO PUT DOWN A MARKER, BUT IT WAS NOT NECESSARY FOR A WHOLE GROUP TO COME. ONE PERSON COULD DO THAT. THEY SHOULD CONCENTRATE ON PETER WRIGHT, THE PAA'S ENGINEERING DIRECTOR. (COMMENT: THE GROUP WILL PROBABLY WANT TO COME ANYWAY. THAT IS THEIR WAY, AND IN ANY EVENT THEY HAVE BUSINESS IN MACAU SO I SUGGEST WE LEAVE THINGS AS THEY ARE.)

ALLEN'S LONDON VISIT

14. HE WOULD BE CONCENTRATING ON THE FINANCIAL ASPECTS. HE WOULD WANT MINISTERS TO UNDERSTAND THAT THE PROJECT WAS SEPARATE FROM THE HONG KONG GOVERNMENT AND WILL BE INDEPENDENTLY RUN. HE WOULD WANT TO STRESS THAT THE FINANCIAL PART OF THE AIRPORT PACKAGE WAS EXTREMELY IMPORTANT. HE WOULD ALSO EMPHASISE THAT THERE COULD BE NO GOVERNMENT GUARANTEE. HE WOULD WANT TO STRESS THE IMPORTANCE OF ECGD SUPPORT. (COMMENT: IN ADDITION TO HIS CALLS ON MINISTERS AND ON OFFICIALS AT DTI AND FCO, MIGHT NOT A CALL ON MALCOLM STEVENS AT ECGD BE USEFUL?)

CONCLUSIONS

15. THIS ALL INDICATES, PREDICTABLY, THAT THE WHEELS ARE BEGINNING TO TURN WITH INCREASING SPEED AND THAT BRITISH COMPANIES WHO WISH TO BECOME INVOLVED WILL NEED TO POSITION THEMSELVES WELL, AND BE VERY ALERT. OTHERS SEEM TO BE SHOWING A

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