UNCLASSIFIED
81
116167
MDHOAN 7644
UNCLASSIFIED
FM FCO
TO IMMEDIATE HONG KONG
TELNO 1361
OF 23170OZ JULY 91
NKB
182 14
TOP COPY Q DIST?
AND TO IMMEDIATE PEKING, JLG HONG KONG, BTC HONG KONG
FOR LORD CAITHNESS' PARTY
PADS: MEDIA ARTICLES ON STATEMENT BY CHIEF EXECUTIVE OF
PROVISIONAL AIRPORT AUTHORITY (PAA)
1.
THE PRESS REPORTED TODAY COMMENTS MADE BY RICHARD ALLEN ON
CHINESE COMPANIES' PARTICIPATION IN TENDERING FOR PADS RELATED
CONTRACTS. TWO ARTICLES ARE BEING FAXED TO YOU. THE FT ARTICLE
QUOTES ALLEN AS SAYING HE WILL WRITE TO CONSORTIA BIDDING FOR ONE OF THE MAIN CONTRACTS (AIRPORT SITE FORMATION) ASKING WHETHER THEY WANT TO RECONSIDER THEIR MEMBERSHIPS, ACCORDING TO THE SPIRIT OF THE MOU. THE INTERNATIONAL HERALD TRIBUNE
HOWEVER REPORTS ALLEN AS SAYING THAT THE PAA WILL WRITE TO EACH COMPANY THAT SOUGHT TO BE PRE-QUALIFIED AND ASK THEM TO RECONSIDER THE MAKE-UP OF THEIR CONSORTIUM. THE LATTER REPORT CLEARLY SUGGESTS POSSIBLE BIAS TOWARDS CHINESE CONCERNS.
2. IF, AS WE ASSUME, THE FT ARTICLE IS THE MORE ACCURATE VERSION, SUBJECT TO HONG KONG'S VIEWS LORD CAITHNESS MAY WISH TO TAKE THE FOLLOWING LINE SHOULD THERE BE COMPLAINTS THAT THE FIELD IS BEING TILTED TO THE ADVANTAGE OF THE CHINESE.
PRIOR TO THE JUNE AGREEMENT CHINESE COMPANIES WERE PRECLUDED FROM BIDDING FOR PADS BUSINESS BY THE CHINESE GOVERNMENT.
UNDER THE TERMS OF THE MOU THE CHINESE GOVERNMENT ACCEPTED THAT CHINESE CONSTRUCTION COMPANIES MAY COMPETE IN THE NORMAL WAY FOR PROJECTS CONNECTED WITH THE AIRPORT.
MR ALLEN'S STATEMENT MAKES COMMERCIAL SENSE AND DOES NOT TILT THE PLAYING FIELD IN ANY DIRECTION.
HURD
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