}
CONFIDENTIAL
075154
MDLIAN 0832
7.
THIS IS ANOTHER MEGA PROJECT IN WHICH GEC ALSTHOM ARE IN POLE POSITION, DESPITE SOME VERY STRONG COMPETITION. THEIR ADVANTAGE LARGELY STEMS FROM GORDON WU'S ADMIRATION FOR THE ROLLING STOCK AND EQUIPMENT ON THE HONG KONG MTR. HE SAID HOWEVER THAT THEIR INITIAL PRICES QUOTED TO HIM WERE SO HIGH AS TO SEEM HARDLY SERIOUS. NONETHELESS HE SAID IT WOULD SEEM STUPID THEY DID NOT GET THE ORDER. INITIAL TALKS AFTER CHRISTMAS SHOULD REDEFINE THE PROJECT AND THE WAY TO TACKLE IT, LEADING TO MORE DETAILED DISCUSSIONS ON SPECIFICATIONS AND PRICE.
8. AGAIN I BELIEVE GEC ALSTHOM (AS OWNERS OF METRO CAMMEL) NEED NOW TO GIVE THIS PROJECT, ABOUT WHICH THEY HAVE FOR LONG BEEN MUCH TOO SCEPTICAL, THEIR FULL, WHOLE-HEARTED AND ENTHUSIASTIC ATTENTION. RONAN, HEAD OF THEIR RAILWAY OPERATION, IN IN HONG KONG THIS WEEK PURSUING OTHER BUSINESS WITH THE MTR. HE HAS HAD ONE MEETING WITH STUART ELLIOT, GORDON WU'S NUMBER TWO, AND SEEMS TO THINK THAT IS ENOUGH. IT NEEDS MUCH MORE THAN THAT, AND IT NEEDS IT URGENTLY. I WILL TRY TO GET THIS ACROSS TO RONAN HIMSELF BUT IT ALSO NEEDS PUTTING AT A HIGHER LEVEL IN THE GROUP. I WILL ENDEAVOUR TO SPEAK TO LORD PRIOR ON THE TELEPHONE TO MAKE THIS POINT (WHICH FOLLOWS DIRECTLY FROM CONVERSATIONS WE HAVE HAD DURING HIS MANY VISITS) BUT ANYTHING THAT CAN BE DONE IN PARALLEL WILL BE VERY HELPFUL. GEC ALSTHOM MUST REMEMBER THAT THE MAIN PURCHASE DECISIONS WILL BE MADE IN HONG KONG AND THEY NEED NOW TO GET CLOSELY ALONGSIDE HOPEWELL AND OVE ARRUP.
(C)
HONG KONG GUANGZHOU HIGHWAY
9. GORDON WU SAID THAT WORK ON THIS IS GOING AHEAD AT FULL SPEED. HE PLANS TO OPEN IT IN 1994. WHEN I SAID THAT I ASSUMED THAT TO MAKE MONEY IT WOULD REQUIRE A MORE RELAXED ATTITUDE BY THE AUTHORITIES BOTH IN HONG KONG AND CHINA TO CROSS-BOARDER ROAD TRAFFIC, HE RESPONDED THAT HE WOULD MAKE GOOD MONEY FROM IT EVEN IF NOT A SINGLE CAR FROM HONG KONG TRAVELLED ON THE ROAD. THIS BECAUSE THE CHINESE HAD NOW AGREED THAT HIS RENMINBI TOLL INCOME FROM THE ROAD WAS TO BE FULLY CONVERTABLE INTO HARD CURRENCY.
10.
HE WAS ALSO READY TO ACTIVATE HIS PLANNED ROAD LINKING MACAU AND SHAJIAO WHICH WOULD FORM THE OTHER SPUR OF THE GUANGZHOU-HONG KONG ROAD. HE PLANNED NEXT YEAR TO MOBILIZE PLANS FOR THE BRIDGE LINK BETWEEN THESE TWO ROAD SPURS, CROSSING THE PEARL RIVER DELTA. SINCE THE HONG KONG GOVERNMENT HAD FAILED TO GIVE HIM AUTHORITY FOR THIS, AND SINCE THE PROPOSAL HAD BEEN WELL-RECEIVED BY THE CHINESE AUTHORITIES, HE PLANNED TO BEND THE
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CONFIDENTIAL