CONFIDENTIAL
002173 MDHIAN 2596
ARE HONG KONG'S EIGHTH LARGEST SUPPLIER. THE AMERICANS SELL FOUR TIMES AS MUCH TO HONG KONG AS DOES THE UK, AND THE JAPANESE SELL EIGHT TIMES AS MUCH. OUR MARKET SHARE IN HONG KONG IS WELL BELOW THE UK WORLD AVERAGE MARKET SHARE, AND IS ALSO WELL BELOW THE MARKET SHARE IN THE ASEAN COUNTRIES IN THE REGION. WE EVEN HAVE A LARGER MARKET SHARE IN VIETNAM THAN WE DO IN HONG KONG. THERE IS NO EASY EXPLANATION FOR THIS. BRITISH FIRMS TRY HARD. MOST OF THEM SELL SUCCESSFULLY HERE. BUT THEY SUCCESSES DO NOT MATCH THE
OPPORTUNITIES.
5. BRITISH COMPANIES ARE ACTIVE ACROSS A VERY WIDE FRONT. SUCCESSFUL ORDERS IN THE RANGE OF DOLLARS 10 TO DOLLARS 50 MILLION ARE COMMON PLACE AND OFTEN WE DO NOT EVEN HEAR ABOUT THEM UNTIL AFTERWARDS. NOW BUSINESS AND THE FINANCIAL SECTOR ARE LOOKING TOWARDS A VERY LARGE PROJECT BUSINESS. THE OPPORTUNITIES HERE ARE QUITE STARTLING. THE AIRPORT IS SO LARGE, SO EXPENSIVE, AND TO BE DONE AS SUCH AN UNPRECEDENTED SPEED THAT THERE SHOULD BE A LOT OF WORK FOR EVERYONE.IT IS VERY FAR FROM RISK FREE HOWEVER, AND IT WILL BE VERY INTERESTING TO SEE HOW THE BIDS COME OUT WHEN THOSE FOR THE MAJOR BRIDGE ARE OPENED ON 16 DECEMBER. THE HONG KONG GOVERNMENT HAS IMPOSED VERY ONERONS CONTRACT TERMS, AND COMPANIES MAY EITHER QUALIFY THEIR BIDS HEAVILY OR PUT IN PRICES VERY MUCH HIGHER THAN THOSE IN THE HONG KONG GOVERNMENT PLANS. THE CRITICAL FACTOR OF SUPPORT BY ECGD AND THEIR EQUIVALENT CREDIT AGENCIES IN OTHER COUNTRIES STILL HAS TO BE RESOLVED. THERE ARE INDICATIONS THAT SOME OF THE OTHERS (I.E. MITI AND EXIM) ARE NERVOUS, ALTHOUGH WE UNDERSTAND THAT COFACE HAS PROMISED FULL AND LARGELY UNQUALIFIED SUPPORT FOR FRENCH COMPANIES. ECGD'S BACKING WILL BE OF MAJOR IMPORTANCE TO ACHIEVE SUCCESS FOR BRITISH COMPANIES IN THE BIDDING, AND PROBABLY OF MAJOR IMPORTANCE TO ACHIEVING THE SUCCESS OF THE PROJECT, FOR OTHERS WILL EXPECT TO ECGD TAKE THE LEAD.
6.
THE AIRPORT IS NOT THE ONLY MAMMOTH PROJECT BUSINESS IN PROSPECT. CHINA LIGHT AND POWER COMPANY (CLP) ARE PLANNING A NEW
BILLION POUND POWER STATION AT BLACK POINT AND GEC ALSTROM ARE VERY WELL PLACED FOR THAT. GORDON WU, A HONG KONG ENTREPRENEUR, IS LOOKING TO BUILD A NEW POWER STATION (SHAJAIO C) JUST ACROSS THE BORDER, AND GEC ALSTROM LOOK EXTREMELY WELL PLACED TO TAKE POUNDS 200 MILLION OR SO WORTH OF BUSINESS FOR THAT. IF BRITAIN WERE TO GET, SAY, A THIRD OR A QUARTER OF THE MEGA PROJECT
BUSINESS DUE TO BE ALLOCATED IN HONG KONG IN THE NEXT TWO OR THREE YEARS, IT WOULD BE SUFFICIENT TO TRANSFER THE PROSPECTS NOT ONLY OF THE BRITISH COMPANIES CONCERNED, BUT ENOUGH TO HAVE A
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