CONFIDENTIAL
013155
MDHIAN 9168
PROJECTS AND CURRENT MAJOR ORDERS
7. THE MAJOR PROJECT SCENE CONTINUES TO BE DOMINATED BY THE PORT AND AIRPORT DEVELOPMENT STRATEGY (PADS). THE CURRENT POLITICAL EXCHANGES WITH THE CHINESE ARE BEING CLOSELY FOLLOWED BY THE BUSINESS COMMUNITY, AS IN THE DISCUSSION IN LONDON ON ECGD COVER, PARTICULARLY THE PMS. OUR FRONT CONTENDERS ARE THE ANGLO- JAPANESE CONSTRUCTION COMPANY, CA TRAFALGAR HOUSE/COSTAIN AND MITSUI JOINT VENTURE), BEAZAR (LESS PROMINENTLY IN A GROUP LED BY BOUYGUES OF FRANCE), AND WIMPEY WHO ARE PUTTING TOGETHER A BRITISH, JAPANESE, US GROUP. SOME OF THE LARGEST CONSTRUCTION CONTRACTS IN THE WHOLE PROJECT ARE AT THE PREQUALIFICATION STAGE (E.G. THOSE FOR THE BRIDGES AND FOR THE CONSTRUCTION OF THE AIRPORT PLATFORM). ONCE THESE SHORTLISTS HAVE BEEN DECLARED, DUE IN THE COMING WEEKS, THE RACE WILL BE ON FOR WHAT WILL BE AMONG THE LARGEST CONTRACTS IN THE WORLD.
8.
VOSPER THORNYCROFT AND FMB MARINE ARE CURRENTLY BIDDING TO SUPPLY SIX POLICE PATROL BOATS TO THE HONG KONG GOVERNMENT. THE CONTRACT WILL BE WORTH POUNDS 25 - 30 MILLION. BOTH COMPANIES ARE STRONG. A DECISION IS EXPECTED BY MAY. THE AWARD OF THIS CONTRACT TO ONE OF THEM WOULD BE A VALUABLE BOOST TO THE SHIPBUILDING INDUSTRY IN THE U.K. THREE OTHER NON-BRITISH FIRMS ARE IN
CONTENTION.
9. HONG KONG AND CHINA LIGHT AND POWER COMPANY, WHOSE EXISTING POWER STATIONS RE POWERED ALMOST ENTIRELY BY BRITISH EQUIPMENT, ARE LIKELY TO START CONSTRUCTING A LARGE NEW POWER STATION AT BLACK POINT IN THE NEW TERRITORIES, WITHIN THE NEXT YEAR. BRITISH COMPANIES, ESPECIALLY GEC, NOW GEC ALSTHOM, SHOULD BE WELL PLACED TO SECURE SUBSTANTIAL BUSINESS FROM THIS PROJECT, ALTHOUGH COMPETITION WILL BE TOUGHER THIS TIME. HMG ARE UNLIKELY TO FEEL ABLE TO FUND THE SORT OF SUPPORT PACKAGE (TRAINING ETC) PROVIDED AS PART OF THE NEGOTIATED CONTRACTS FOR CHINA LIGHT AND POWER'S EARLIER POWER STATIONS.
10. ONE OF BRITAIN'S LARGEST COMMERCIAL STAKES IN HONG KONG IS CABLE AND WIRELESS'S OWNERSHIP OF THE TELEPHONE COMPANY, WITH MONOPOLIES FOR DOMESTIC CALLS UNTIL 1995 AND FOR INTERNATIONAL TRAFFIC UNTIL 2006. AMERICAN TELEPHONE COMPANIES, CLEARLY WITH SOME BACKING FROM THE US GOVERNMENT, ARE ACTIVE IN PRESSING FOR AN END TO THESE MONOPOLIES, POSSIBLY EVEN BEFORE THESE FRANCHISES EXPIRE. CABLE AND WIRELESS ARGUE, WITH SOME LOGIC, THAT HONG KONG
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