RESTRICTED
FM DTI
TO ROUTINE BTC HONG KONG
TELNO OTTER 312
OF 16103OZ OCTOBER 91
INFO ROUTINE PEKING
RESTRICTED
MA
107
051557 MDLIAN 7405
Mr
Pa
Figress 1991
My fox
ли
Mh stare (Not me who
distributed His tel!
FOR HEAP FROM ADAMS, HD OF PEP
MY OTTER 259
GORDON WU AND PROJECTS: HONG KONG
WHEN I SAW BRIAN RONAN, MD OF METCAM, ON 3 OCTOBER I TACKLED HIM ON HIS CONCERN OVER POLITICAL RISK BEYOND 1997 RAISED WITH YOU IN SEPTEMBER (YOUR OTTER 155). I SAID THAT GEC ALSTHOM WERE TAKING A VERY POSITIVE AND CONFIDENT VIEW OF THE POST-1997 PERIOD IN RELATION TO BLACK POINT. WHY WAS HE FUSSING?
2. RONAN SAID THAT HE WAS CONCERNED ABOUT THE BUYER RISK. THE HONG KONG MTR WAS A GOVERNMENT-OWNED INSTITUTION AND THE CONTRACTUAL DIVISION AT STANHOPE GATE WERE ASKING WHETHER IT WOULD CONTINUE TO EXIST AFTER 1997. I SAID THAT WHILE ONE HAD CLEARLY TO ESTABLISH THE PRECISE POSITION IN DUE COURSE I WAS ENTIRELY CONFIDENT THAT SATISFACTORY ARRANGEMENTS WERE BEING MADE., YOU WILL DOUBTLESS WISH TO DISCUSS THIS WITH RONAN WHEN HE IS IN · HONG KONG AT THE END OF OCTOBER. I WOULD BE INTERESTED TO KNOW HOW THIS ISSUE IS BEING HANDLED BY THE HONG KONG GOVERNMENT.
MITSUBISHI,
3. ON THE AIRPORT RAILWAY RONAN SAID THAT THEY WERE VERY CONCERNED ABOUT JAPANESE COMPETITION. HITACHI AND TOSHIBA WERE THE MAIN COMPETITORS AND VERY KEEN. THE DESIGN WOULD BE A NEW ONE SO THAT METCAM WOULD LOSE SOME OF ITS COMPETITIVE EDGE AS THE EXISTING SUPPLIER. HOWEVER SOME SPARES AND MAINTENANCE WOULD BE COMMON. HE ADDED FOR GOOD MEASURE THAT METCAM SAW THEMSELVES AS FULLY COMPETITIVE AND THE JAPANESE AS RELATIVELY EXPENSIVE PROVIDED THEY DID NOT ARTIFICIALLY CUT THEIR PRICE TO SECURE A FOOTHOLD IN HONG KONG.
The MTR?
MTRC
PAGE 1 RESTRICTED