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174066 MDLIAN 2258
NEI OR JOHN BROWN.
(D) HONG KONG CANTON HIGHWAY
7. WORK WAS NOW MOVING AHEAD. THE FIRST SECTION WAS NEARLY FINISHED. THERE WAS NOT MUCH SCOPE FOR IMPORTED PRODUCTS. WHEN I ENQUIRED ABOUT LIGHTING AND SIGNALLING HE SAID THIS WAS TOO SMALL FOR US, AND THAT WE SHOULD CONCENTRATE ON HIS BIGGER PROJECTS.
(E) HONG KONG AIRPORT PROJECT: MAIN BRIDGE
8. GORDON WU SAID THAT ALTHOUGH HE WAS ONE OF THE FIVE PRE- QUALIFIERS HE HAD BEEN WONDERING WHETHER IT WAS WORTH BIDDING FOR THE MAIN BRIDGE CONTRACT IN VIEW OF HIS OTHER MAJOR PROJECTS. MOREOVER WHEREAS HE HAD EARLIER BELIEVED TRAFALGAR HOUSE WOULD GET THIS, HE NOW BELIEVED THE ALL-JAPANESE GROUP HAD IT LARGELY SEWN UP. HOWEVER THE NCNA IN HONG KONG HAS ARRANGED FOR HIM TO MEET WITH A GROUP OF PRC CORPORATIONS WITH A VIEW TO HIS FRONTING A STRONG CHINESE GROUP WHICH WOULD BE ORGANISED TO COMPETE WITH THE ALL-JAPANESE GROUP. THAT MEETING WAS TO TAKE PLACE SHORTLY. IF THE GROUP LOOKED TO BE TECHNICALLY, COMMERCIALLY AND POLITICALLY IMPORTANT HE MIGHT AGREE TO LEAD IT. THE ALL-JAPANESE GROUP WOULD BE MAKING A STRONG PITCH: NIPPON STEEL HAD FORCED IHI
TO LEAVE HIS GROUP. WE IN THE UK SHOULD ALSO BE AWARE OF JAPANESE COMPETITION FOR THE RAILWAY FOR THE AIRPORT FOR WHICH THEY WOULD BE MAKING A VERY STRONG CO-ORDINATED BID. IN PASSING THIS TO RONAN, OF METRO-CAMMELL, I URGED HIM TO ESTABLISH THEMSELVES WELL FOR THE RAILWAY CONTENT OF THE PROJECT. I WAS ALARMED BY HIS RESPONSE THAT THEY WOULD HAVE TO THINK VERY CAREFULLY ABOUT TAKING ON NEW COMMITMENTS IN HONG KONG WHICH WENT BEYOND 1997
SINCE THE POLITICAL RISKS MIGHT BE TOO GREAT. I DID MY BEST TO ENCOURAGE HIM TO THINK MORE POSITIVELY ABOUT THE LONG-TERM PROSPECTS IN THIS THEIR LARGEST OVERSEAS MARKET, BUT THIS MAY NEED FURTHER SUPPORT IN UK.
(F) CONCLUSIONS
9. YOU WILL DOUBTLESS HELP ENSURE THAT APPROPRIATE BRITISH COMPANIES, AND PARTICULARLY GEC ALSTHOM ON BOTH THE POWER AND TRANSPORT SIDES ARE KEPT ABREAST OF THESE VARIOUS POSSIBILITIES. AS ALWAYS WITH GORDON WU, WE CANNOT BE SURE THEY WILL ALL RUN, BUT MOST SEEM TO HAVE A BETTER THAN EVEN CHANCE, AND EACH MUST BE TAKEN SERIOUSLY AT THIS STAGE FOR US TO HAVE A CHANCE OF SUCCESS. MOREOVER ONLY FOR THE HONG KONG AIRPORT BRIDGE IS HE IN A COMPETITIVE TENDERING SITUATION: ALL THE REST ARE PLANNED AS NEGOTIATED CONTRACTS. AS YOU WILL SEE THE STAKES ARE VERY HIGH. ALTHOUGH THE PROJECTS ARE SCATTERED, IN CHINA, THAILAND AND THE
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