CONFIDENTIAL
(16
075653
MDHOAN 3363
CONFIDENTIAL
FM FCO
TO IMMEDIATE BTC HONG KONG
TELNO 213
OF 24103OZ OCTOBER 91
AND TO IMMEDIATE PEKING
TOB
This
TOP COPY
6015Q DIST?
YOUR TELNO 292 (NOT TO ALL) PADS: BALFOUR BEATTY INVOLVEMENT:
AIRPORT PLATFORM
П
1 AT THE SUGGESTION OF SIR DENIS WALTERS MP, MR MALWYN JONES MANAGING DIRECTOR OF BALFOUR BEATTY CONSTRUCTION INTERNATIONAL LIMITED, CALLED ON ANDREW BURNS YESTERDAY TO DISCUSS BALFOUR BEATTY'S INVOLVEMENT PRIMARILY IN THE AIRPORT PLATFORM CONTRACT. TWO IMPORTANT POINTS AROSE.
2.
FIRST, WHILST HE MADE IT CLEAR THAT HE WAS NOT SEEKING TO INFLUENCE IN ANY WAY HKG'S AWARDING OF CONTRACTS, HE ASKED IF THERE WERE ANY ARRANGEMENTS OR AGREEMENTS FOR CERTAIN CONTRACTS TO BE AWARDED TO ANY PARTICULAR COUNTRY IE THE UK. HIS ENQUIRY WAS PROMPTED, HE SAID, BY THE HIGH COST OF PREPARING TENDERS, AND GIVEN BALFOUR BEATTY'S POTENTIAL INTEREST IN A NUMBER OF PADS RELATED CONTRACTS (AS WELL AS OTHER MAJOR PROJECTS ELSEWHERE IN THE WORLD), A STEER IN THE RIGHT DIRECTION (IF THERE WAS ONE) WOULD BE VERY HELPFUL. BURNS EXPLAINED HKG'S POSITION ON AWARDING CONTRACTS, EMPHASING THE LEVELNESS OF THE PLAYING FIELD. WE WERE NOT AWARE OF ANY PRIOR COMMITMENT TO PUT ANY OF THE CONTRACTS IN THE DIRECTION OF ANY ONE FIRM OR, CONSORTIA OR COUNTRY. MR JONES APPEARED RELIEVED TO HEAR THIS. WE WONDER IF THERE ARE FALSE RUMOURS CIRCULATING THAT CERTAIN CONTRACTS HAVE ALREADY BEEN EAR-MARKED. WE SHOULD WELCOME A
READ OUT FROM THE HONG KONG GOVERNMENT.
3. SECONDLY, JONES REFERRED TO PRC COMPANY INVOLVEMENT WITH THE CONSORTIA BIDDING FOR THE PLATFORM CONTRACT. BALFOUR BEATTY HAVE BEEN APPROACHED, VIA THEIR NEW CHIEF EXECUTIVE SIR ROBERT DAVIDSON, BY CITIC WHO SAY THEY ARE INTERESTED IN JOINING THE BALFOUR BEATTY LED GROUP. CITIC ARE EXPECTED TO MAKE A DECISION WITHIN THE NEXT FEW DAYS WHETHER TO JOIN THE GROUP BUT ARE UNDERSTOOD TO BE AWAITING FORMAL PRC APPROVAL AND ALSO THE OUTCOME OF DISCUSSION WITH THE BANK OF CHINA. IN THIS CONNECTION JONES HAS LEARNED THAT NONE OF THE CHINESE COMPANIES WHICH HAVE ASSOCIATED THEMSELVES WITH THE OTHER CONSORTIA HAVE
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CONFIDENTIAL