CONFIDENTIAL

026234

MDHIAN 9746

ELECTRIC, WILL ORDER TWO FURTHER UNITS FOR AN EXISTING POWER STATION LATER THIS YEAR TO A VALUE OF SOME 40 MILLION POUNDS. NEI SUPPLIED THE LAST AND WILL BE WELL PLACED. TO REPEAT THE ORDER.

(III) CONTAINER TERMINAL EIGHT. TENDER DOCUMENTS HAVE ISSUED FOR THIS CONTRACT WHICH WILL HAVE A VALUE OF ABOUT 250 MILLION POUNDS. GAMMON OF THE U.K. AND HONG KONG LEAD ONE GROUP WHILE KEIR AND BOVIS, BOTH OF THE U.K. ARE MEMBERS OF OTHER CONTENDING GROUPS. FIVE GROUPS IN ALL ARE COMPETING. EQUIPMENT FOR THE TERMINAL, PRIMARILY CRANES, WILL BE WORTH APPROXIMATELY ANOTHER 250 MILLION POUNDS. DAVEY MORRIS WILL BE CONTENDERS FOR THE

CRANES BUT WILL FIND THE JAPANESE COMPETITION HARD TO BEAT.

HONG KONG PLANS TO SPEND MORE

(IV) SEWERAGE DEVELOPMENTS.

THAN ONE BILLION POUNDS IN MAJOR NEW SEWERAGE WORKS AND TUNNELLING OVER THE NEXT 8 OR 9 YEARS. BRITISH CONSULTANCIES HAVE DONE REASONABLY WELL SO FAR, BUT THE MAJOR CONTRACTS WILL BE THE OBJECT OF KEEN COMPETITION.

2.

THIS IS NOT, AND IS NOT INTENDED TO BE, AN EXHAUSTIVE LIST. IT DOES, I HOPE, ILLUSTRATE THE SIZE OF THE OPPORTUNITIES AVAILABLE TO BRITISH COMPANIES.

HEAP

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ΜΑΙΝ

81

PRIME MINISTER'S VISIT TO

(CHINA AND HONG KONG)

LIMITED

FED

PUSD

HKD

JOINT DIRECTORATE

NEWS D

ADDITIONAL

6

DISTRIBUTION

87

PLANNERS

PROTOCOL D

RAD

PS

PS/LORD CAITHNESS

PS/PUS

SIR J COLES

MR BURNS

PAGE

3

CONFIDENTIAL

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