HKB 15213
17 APR 1991
NDE RESTRICTED
REGISTRY
FM BHONG KONG,
JO PRIORITY DTI
TELNO OTTER-76
OF 12005OZ APRIL 91
RESTRICTED
Ps/Lord Caithness
Sis I Colls
Mr Burns of
No Paul of
m
12/10
INFO ROUTINE F C 0, PEKING, TOKYO, ECGD
FOR ROGERS, PEP1
(52)
Mr You
(53)
076143 MDLIAN 2728
Mr Fun M
Ра
an
I hope not undication of further defections
or the seeking
12/4
of greater margins for PADS
work
MY TELNO OTTER 73: HONG KONG AIRPORT PROJECT
1.
ALLAN FORREST OF WIMPEY HAS TELEPHONED ME FROM LONDON TO SAY THAT THE WIMPEY MAIN BOARD HAVE DECIDED AGAINST PURSUING THE AIRPORT PLATFORM CONTRACT FOR THE NEW AIRPORT. THEIR GROUNDS WERE THAT THEY HAD SO MANY PROSPECTS IN IRAN AND KUWAIT WHICH WOULD CONFLICT ON TIMING, AND WHERE MARGINS PROMISED TO BE SIGNIFICANTLY BETTER, THAT THEY PREFERRED TO GIVE THOSE PRIORITY. FORREST, WHO HAD HIMSELF NEGOTIATED THE PARTNERSHIP WITH NISHIMATSU AND MORRISON-KNUDSON, WAS HIMSELF CONSIDERABLY DISMAYED AT THIS TURN OF EVENTS BUT WAS CLEAR THAT THE DECISION WAS IRREVERSIBLE. THEY HAD NOT THOUGHT IT FAIR TO EITHER OF THEIR PARTNERS TO CONTINUE FURTHER, BUT HAD RECOMMENDED TO THEM THAT THEY MIGHT CONSIDER BRINGING TARMAC INTO THEIR GROUP TO REPLACE THEM. DISCUSSIONS HAVE APPARENTLY TAKEN PLACE AT CHAIRMAN LEVEL BETWEEN WIMPEY AND TARMAC WHICH HAVE BEEN REPORTED TO NISHIMATSU AND MORRISON-KNUDSON. FORREST SAID THIS DID NOT NECESSARILY END WIMPEY'S INTEREST IN OTHER PARTS OF THE AIRPORT PROJECT, AND HE HAD IN ANY EVENT BEEN CHARGED WITH IMPROVING THEIR PRESENCE AND THEIR TRACK RECORD IN HONG KONG, BUT THIS PARTICULAR CONTRACT WAS NOW REMOVED FROM THEIR PLANS.
2. THIS IS A SAD DEVELOPMENT. MANY PEOPLE HAD COMMENTED TO ME THAT THIS GROUP WERE VERY FORMIDABLE. I AM NOT VERY OPTIMISTIC ABOUT TARMAC PICKING UP THE BATON. AS REPORTED IN MY TELNO OTTER 73, ONE OF THEIR DIRECTORS, REES, IN HONG KONG THIS WEEK, HAS TOLD ME THAT THEIR PRIMARY INTEREST IS IN THE WESTERN HARBOUR
CROSSING.
HEAP
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