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TO IMMEDIATE FCO
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FM BTC HONG KONG
TELNO 105
OF 081059Z APRIL 92
AND TO IMMEDIATE DTI
HKA 182/3
TOP COPY Q DIST?
Pa
74
064677
MDHIAN 9773
DTI FOR HALL, HEAD OF PEP
AWARD OF CONTRACTS TO BRITISH COMPANIES, ESPECIALLY IN THE AIRPORT PROJECT
SUMMARY
1. IN RESPONSE TO FURTHER CRITICISM THAT FAVOURITISM IS BEING SHOWN TO BRITISH COMPANIES IN THE AIRPORT PROJECT. I HAVE SPOKEN
AT A PRESS CONFERENCE SAYING THAT SUCH CHARGES ARE UNFOUNDED.
DETAIL
2. AS REPORTED PREVIOUSLY THERE HAS BEEN RISING PUBLIC CRITICISM
IN HONG KONG OVER THE AWARD OF CONTRACTS TO BRITISH COMPANIES, PARTICULARLY IN CONTRACTS RELATED TO THE NEW AIRPORT PROJECT. TODAY (8 APRIL) THE SOUTH CHINA MORNING POST'S LEADING FRONT PAGE ARTICLE WAS HEADED 'UK FIRMS SWEEP PORT CONTRACTS' AND CLAIMED THAT ALL SEVENTEEN CONSULTANCY CONTRACTS FOR PORT DEVELOPMENT UNDER PADS HAD GONE TO BRITISH COMPANIES AND COMMENTS 'THIS COMES AMID GROWING CONCERN OF FAVOURITISM TOWARDS BRITISH INTERESTS'.
ALBERT CHAN WAI-YIP OF THE LEGISLATIVE COUNCIL IS QUOTED AS SAYING HE WILL SEEK AN EXPLANATION FROM THE ADMINISTRATION ON WHY SO MANY BIDS HAD BEEN AWARDED TO BRITISH INTERESTS.
3. AFTER TAKING SOUNDINGS OF THE HONG KONG ADMINISTRATION, INCLUDING THE CHIEF SECRETARY, SIR DAVID FORD, AND ELLIOTT, DIRECTOR OF INFORMATION POLICY, AND GETTING ENCOURAGING RESPONSES. I DECIDED TO REBUT THESE ALLEGATIONS AT A PRESS CONFERENCE THIS AFTERNOON 8 APRIL.
4. AT THE PRESS CONFERENCE I READ A STATEMENT (FULL TEXT IS BEING FAXED TO HKD) SAYING THAT WHILE IT WAS NOT FOR ME TO EXPLAIN WHY PARTICULAR CONTRACTS HAD BEEN AWARDED TO PARTICULAR COMPANIES, IT DID NOT SURPRISE ME THAT BRITISH CONSULTANTS HAD TAKEN A SIGNIFICANT SHARE OF THE CONTRACTS SO FAR SINCE ENGINEERING CONSULTANCY WAS AN AREA OF PARTICULAR UK STRENGTH. MOREOVER THE COMPANIES CONCERNED WERE MOSTLY LONG ESTABLISHED IN HONG KONG AND
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