CONFIDENTIAL
in non-compliant bids, as well as compliant ones, to give
HKG the chance to switch.
Financing
The Governor has given us some reassurance on this
subject.
5.
We will probably only discover the true picture on
any financing difficulties when the bids are in. But here I
think HMG can play a crucial role. If ECGD cover is made
available for these projects, this is likely to lead to other export agencies having faith in the series of projects. They may do so anyway: but ECGD coming in will
confirm their view.
6.
There are only three weeks left until the tenders for
the Lantau Fixed Crossing come in. It is effectively to
late to try to influence the tender procedures, which must
in any case be left to HKG's judgement.
7.
What we do need from Hong Kong is to be alerted very quickly if there are any serious difficulties with the
tenders submitted on 16 December. This will not be easy for them, since after that any information which
they reveal on the tenders would be commercially
sensitive. But these series of projects, beginning with the
Lantau Fixed Crossing, are so important for Hong Kong's
future that I recommend the Secretary of State should be
prepared to write to the Governor asking to be kept fully and quickly informed of any developments which could put the tendering process at risk (eg if all the bids were too expensive or non-compliant) or which would require further
consultation with the Chinese.
CHAAFT/3
CONFIDENTIAL
PF Ricketts
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