CONFIDENTIAL
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021474 MDLIAN 6870
HK B
182 13
CONFIDENTIAL
FM BTC HONG KONG TO PRIORITY DTI
TELNO OTTER 47
OF 07110OZ FEBRUARY 91
INFO PRIORITY FCO, TOKYO, PEKING, ECGD
FOR ADAMS, PEP
HONG KONG AIRPORT PROJECT
SUMMARY
Pr
1. STUART ELLIOTT, THE NUMBER TWO AT HOPEWELL HOLDINGS TO GORDON WU, HAS BROUGHT ME UP TO DATE WITH THEIR PLANS TO COMPETE FOR THE LANTAU BRIDGES, AND HAS PROPOSED A MERGING OF THE AJC AND HOPEWELL GROUPS.
DETAIL
2. ELLIOTT SAID THAT HE HOPED THEIR GROUP WOULD HAVE OUR SUPPORT. IT INCLUDED OVE ARUP, COSTAIN AND TILEMAN (THE LATTER HAVING PLAYED AN IMPORTANT ROLE IN THE HUMBER BRIDGE) AMONG OTHER BRITISH ELEMENTS. I RESPONDED THAT WITHIN THE CONSTRAINTS OF THE SUPPORT PROMISED TO THE ANGLO-JAPANESE CONSTRUCTION GROUP OF WHICH THEY WERE AWARE, WE WERE ANXIOUS TO SEE MAXIMUM BRITISH PARTICIPATION, WE WELCOMED THE BRITISH ELEMENTS IN THEIR GROUP, AND WOULD GIVE WHAT SUPPORT WE COULD.
3. ELLIOTT SAID IHI WERE COMING UNDER FIERCE PRESSURE FROM JAPAN TO LEAVE THEIR GROUP AND WORK EXCLUSIVELY WITH THE ALL-JAPANESE GROUP. IHI HAD TOLD THEM THAT THEY PREFERRED TO STAY WITH HOPEWELL BUT HAD EMPHASISED THE DIFFICULT OF THEIR POSITION. THEY DID NOT WANT TO BE LED BY NIPPON STEEL, AND WOULD BE HAPPY TO WORK WITH BRITISH STEEL AND OTHER UK SUPPLIERS. HOPEWELL SAW NO CONFLICT IN IHI BEING IN BOTH GROUPS AT THE PRE-QUALIFICATION AND EVEN BIDDING STAGE BUT THEY WERE WORRIED THAT IHI MIGHT SUCCUMB TO THE JAPANESE PRESSURES. HE THOUGHT IHI WERE THE MOST POWERFUL ELEMENT IN THE HOPEWELL GROUP (FOR OTHER MEMBERS SEE MY TELNO OTTER 9).
4. ELLIOTT WAS ALSO WORRIED ABOUT THE REPORTS HE HAD HEARD (REPORTED IN MY TELNO OTTER 45 OF 31 JANUARY) THAT THEY WOULD BE PRE-QUALIFIED ONLY FOR THE SMALLER BRIDGE AND NOT FOR THE LARGER. HE ASKED IF WE COULD INTERVENE TO HELP. I REPLIED THAT IF I WERE
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