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FM BTC HONG KONG TO PRIORITY DTI
TELNO OTTER 148
OF 30015OZ JULY 91
INFO PRIORITY FCO
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copies pls
AKB 182/3 for Mr Cox
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182
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MOLIAN 9338
Mr
Furness
ad Pa Ра
3017
FOR ADAMS, HEAD OF PEP.
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JIM BROAD OF YOUR DIVISION AND I CALLED ON RICHARD ALLEN, CHIEF EXECUTIVE OF THE PROVISIONAL AIRPORT AUTHORITY, ON 29 JULY.
2. I ASKED IF HE COULD EXPAND ON HIS RECENT REPORTED STATEMENTS ABOUT ADDITIONAL COMPANIES BEING ALLOWED TO PRE-QUALIFY FOR THE MAIN CONTRACTS. HE SAID HIS REMARKS HAD RELATED ONLY TO PRE- QUALIFICATION FOR THE AIRPORT PLATFORM CONTRACT. THEY DID NOT
APPLY TO THE FIXED LINK CONTRACT. HE HAD NOT SPECIFICALLY MENTIONED CHINESE FIRMS, NOR WAS THE POSSIBILITY OF NEW NAMES BEING ADDED TO CONTENDING GROUPS CONFINED TO CHINESE FIRMS.
HOWEVER HIS STATEMENT HAD REFERRED TO THE SIGNING OF THE MEMORANDUM OF UNDERSTANDING WITH CHINA AS BEING THE REASON FOR ALLOWING SUCH ADDITIONS, WHICH HE AGREED MIGHT LEAD SOME TO SUPPOSE THE CONCESSION WAS AIMED ONLY AT CHINESE FIRMS. HE CONFIRMED HOWEVER THAT BRITISH AND ANY OTHER FIRMS COULD BE ADDED, NOT TO THE POINT OF RADICALLY CHANGING THE SHAPE AND COMPOSITION OF ANY EXISTING GROUP, BUT SO LONG AS THEY APPEARED TO COMPLIMENT AND STRENGTHEN EXISTING GROUPS.
3. COMMENT. GIVEN THE RELEVANT PAUCITY OF CONTENDING BRITISH
FIRMS (COSTAIN AND BALFOUR BEATTY ARE THE ONLY MAJOR BRITISH CONTENDERS OF WHICH I AM AWARE) THIS MIGHT GIVE US A WINDOW OF OPPORTUNITY, WHICH WILL ONLY REMAIN OPEN FOR A FEW WEEKS, TO SEE IF SOME OF THE MISSING BRITISH HEAVYWEIGHTS, EG TAYLOR WOODROW, TARMAC, MOWLEM, HIGGS AND HILL ETC MIGHT BE INTERESTED EVEN AT THIS STAGE IN JOINING UP WITH EXISTING GROUPS.
4. ALLEN CONFIRMED THAT A LETTER TO EACH GROUP THAT HAD SOUGHT PRE-QUALIFICATION FOR THE PLATFORM WOULD ISSUE THIS WEEK, TELLING THEM THAT THEY COULD ENLARGE THEIR GROUP IF THEY WISH. THEY WILL EXPECT QUICK REPLIES AND THEN WOULD PICK THOSE WHO HAD PRE- QUALIFIED. THEY WOULD HOPE TO SIGN A CONTRACT IN ABOUT A FURTHER 9 MONTHS. AFTER THIS THERE WILL BE NO OTHER CONSTRUCTION CONTRACTS FOR THE AIRPORT ITSELF FOR ANOTHER 18 MONTHS OR SO.
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