LORD CAITHNESS' MEETING WITH THE SECRETARY OF STATE,
5PM 24 OCTOBER
HONG KONG: NEW AIRPORT: ECGD COVER
Points to make
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Crucial phase on airport contracts soon to be reached. Bids for the main suspension bridge (£750 million) due in on 16 December. Bids for airport platform (£900 million) due in in February. Also Black Point power station looming.
British companies well placed in all three ventures. The Anglo-Japanese Consortium (led by Trafalgar House/Costain)
for the bridge, Trafalgar House or Balfour Beatty for the airport platform and GEC/A for the power station.
To have any realistic chance of success, ECGD cover is
essential. Some companies already putting in for cover. Others will soon, although they could do so, even after bids
have been submitted to HKG.
But Hong Kong is one of ECGD's "concentrated" markets.
Treasury approval is required both for indications of cover
and for commitments. In view of the size of projects, EGC approval will be required. Treasury have already indicated
that they do not wish to see exposure in Hong Kong increased
further.
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Worth speaking to Mr Lilley suggesting a pre-emptive
approach to the Prime Minister. These contracts are so important both commercially and politically for confidence in Hong Kong that they need to be looked at in a wider
context not just as routine ECGD business.
TICADA/1
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