DRAFT
Sir J Coles
PS/Mr Lennox-Boyd
Private Secretary
CONFIDENTIAL
FROM: P F Ricketts
Hong Kong Department
DATE: 27 November 1991
cc: PS/Lord Caithness
Mr Burns
Mr Miles,
Joint Directorate
Mr Broadbent,
Economic Advisers
HONG KONG AIRPORT PROJECT: LANTAU FIXED CROSSING
1. The Secretary of State has asked for advice on whether
the anxieties expressed by the British Trade Commissioner in
Hong Kong about the terms of contract and financing for
the Lantau Fixed Crossing are valid.
Terms of Contract
2. There have been complaints raised about the rigorous
terms of the Lantau Fixed Crossing tender ever since they
were issued. As Mr Heap has mentioned, the European, Japanese and Hong Kong Contractor's Associations have all
made approaches to the Hong Kong Government but have been told the conditions will not be changed.
3.
The DTI have spoken with Sir D Ford about concerns expressed in the contract conditions and he has confirmed
that Hong Kong Government think the risks of having higher
CHAAFT/1
CONFIDENTIAL