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CONFIDENTIAL
FM BTC HONG KONG
TO PRIORITY F C O TELNO 301
OF 251035Z OCTOBER 91
INFO PRIORITY PEKING
CONFIDENTIAL
104201 MDLIAN 9732
Mr Martin Tis copy
ORIGINATORS CORRECTION Pis
to
пс
BURNS
Mr Roger PEP/DT
годез
YOUR TELNO 213: PADS:
CONTRACT
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BALFOUR BEATTY: AIRPORT SITE PREPARATION
FOLLOWING THEIR MANY VISITS HERE I AM CONFIDENT THE BALFOUR BEATTY TOP MANAGEMENT UNDERSTAND THE HONG KONG GOVERNMENT'S
DETERMINATION TO MAINTAIN QUOTE LEVEL PLAYING FIELDS UNQUOTE IN THE AWARD OF ALL AIRPORT PROJECT RELATED CONTRACTS. WHAT IS LIKELY TO HAVE LAIN BEHIND THEIR QUESTION IN YOUR PARA 2 IS AN APPREHENSION THAT IF THE COSTAIN/TRAFALGAR HOUSE LED GROUP WIN THE BRIDGE CONTRACT, WHICH WILL BE AWARDED FIRST, THEN THERE MIGHT BE SOME BIAS AGAINST ANOTHER UK LED GROUP BEING AWARDED THE OTHER OF THE MAJOR CONTRACTS, I.E. THE SITE PREPARATION. THIS IS A CONCERN THEY HAVE DISCUSSED WITH ME A NUMBER OF TIMES, AND
AT ONE POINT THEY WERE ANXIOUS NOT TO BE THE LEADERS OF THEIR GROUP FOR THE SITE PREPARATION BECAUSE OF THIS FACTOR. THEY WILL NO DOUBT HAVE HAD THE MESSAGE FROM ALL QUARTERS HOWEVER THAT
PLAYING FIELDS WILL BE KEPT LEVEL. IT IS SAID OFTEN ENOUGH.
2. I AM NOT AWARE OF ANY QUOTE FALSE RUMOURS UNQUOTE CIRCULATING ABOUT PRIOR EARMARKING OF CONTRACTS. NO-ONE IN HONG KONG, AND THAT MUST INCLUDE BALFOUR BEATTY, IS LIKELY TO THINK THAT. THAT DOES NOT MEAN THAT THOSE INVOLVED HERE IN THE
CONSTRUCTION AND RELATED INDUSTRIES OR IN OTHER GOVERNMENT TRADE OFFICES SUCH AS THIS, DO NOT TRY TO IDENTIFY FAVOURITES IN THE RACES FOR THE MAIN CONTRACTS. SOME OF THESE WERE REPORTED IN MY TELNOS OTTER 196 AND 197.
3. INVOLVEMENT OF CHINESE COMPANIES (PARA 3 OF YOUR TUR). AS REPORTED IN PARA ONE OF MY TELNO OTTER 195, THE BALFOUR BEATTY LED GROUP WERE THE ONLY ONE THAT QUALIFIED FOR THE SITE PREPARATION CONTRACT WHICH DID NOT HAVE A MAINLAND CHINESE COMPANY LISTED, BUT THAT I KNEW THEY HAD BEEN ACTIVELY LOOKING FOR SUCH A PARTNER. MALWYN JONES' ASSERTION THAT THE CHINESE COMPANIES IN THE OTHER GROUPS HAVE NOT YET RECEIVED OFFICIAL APPROVAL TO BE THERE IS SURPRISING. NOTHING ANY OF THE OTHER GROUPS HAVE SAID TO ME SUGGESTS THAT THEY REGARD THEIR CHINESE
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