CONFIDENTIAL
153170
MDHIAN 1414
BE PLENTY OF INTERNATIONAL AND PARTICULARLY JAPANESE PARTICIPATION IN PADS WITHOUT OUR PROMOTING IT.
8.
IN DISCUSSION WITH TOWNSEND, WHO HEADS THE BECHTEL TEAM WHO ARE PROJECT MANAGERS FOR THE OVERALL PROJECT, ON 10 NOVEMBER, HE TOLD ME THAT THEY ARE EXPECTING BIDS ON 17 DECEMBER FROM EACH OF THE FOUR PREQUALIFIED GROUPS. (THIS IS NOT AS SELF EVIDENT AS IT MAY SEEM: THE TERMS ARE ONEROUS AND THE RISKS HIGH), HE ASSUMES IT LIKELY THAT EACH GROUP WILL SUBMIT A COMPLIANT BID WHICH WILL PROBABLY BE VERY HIGH, SINCE THE HKG CONDITIONS HAVE PUT ALL THE RISK ON THE CONTRACTOR, AND THAT EACH WILL PROBABLY ALSO SUBMIT A LOWER, QUALIFIED, BID, GIVING A LOWER PRICE IF SOME OF THE RISK IS SHARED BY THE HKG. HE ALSO INDICATED THAT IT WAS THE HKG WHO HAD INSISTED ON THE CONTRACTORS TAKING ALL THE RISKS, AGAINST THE
ADVICE OF BECHTEL.
9.
SINCE THE ABOVE WAS PREPARED I HAVE HAD A CHANCE TO DISCUSS (GUARDEDLY) THE POINTS IN YOUR TUR WITH DEW MATTHEWS OF SHROEDERS AND SIR GORDON MANZIE OF AJC, NOW VISITING HONG KONG. BOTH THOUGHT THAT ANY APPROACH TO THE JAPANESE SHOULD BE VARY CAUTIOUS AND LOW KEY: THEY SAW ADVANTAGE TO THEMSELVES IN AJC GETTING BETTER BACKING FORM ECGD THAN THE ALL JAPANESE GROUP WOULD GET FROM MITI, AND DID NOT WANT US TO DO ANYTHING THAT MIGHT PERSUADE THE JAPANESE TO IMPROVE THEIR TERMS.
HEAP
YYYY
ΜΑΙΝ
87
HONG KONG AIRPORT GENERAL
LIMITED
HKD
PUSD
ECONOMIC ADVISERS
ERD
FED
JOINT DIRECTORATE
NEWS D
PLANNERS
}
DISTRIBUTION
98
RAD
PS
PS/LORD CAITHNESS
PS/MR LENNOX-BOYD
PS/PUS
MR BAYNE
SIR J COLES
MR MILES
MR BURNS
3
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