STANDING IT IS UNLIKELY THAT THE GOVERNMENT WOULD ALLOW KOREA'S INTERNATIONAL IMAGE TO SUFFER THROUGH THE COLLAPSE OF SUCH A MAJOR
PARTS OF THE CORPORATION WOULD BE BROKEN UP TO THE BENEF OF HYUNDAI'S COMPETITORS.
PROJE
5.
WE ARE NOT (NOT) OF COURSE QUALIFIED TO JUDGE HYUNDAI'S TECHNICAL CAPABILITY TO TACKLE THIS PROJECT. WE ASSUME THAT THIS SHOULD HAVE BEEN FULLY ESTABLISHED IN THE PREQUALIFICATION EXERCISE AND THE RFP PROCEDURE. NEVERTHELESS:
A) WE KNOW OF NO MAJOR CIVIL ENGINEERING PROJECTS OF THIS DEGREE OF SOPHISTICATION TACKLED BY HYUNDAI. LIKE OTHER KOREAN CONSTRUCTION COMPANIES, THEIR TRACK RECORD IS AT ITS HIGHEST IN MORE
CONVENTIONAL PROJECTS. ON THE OTHER HAND, SIMILAR RESERVATIONS WERE EXPRESSED ABOUT HYUNDAI'S ABILITY TO CONSTRUCT THE TECHNICALLY SIMPLER
SO, SUCCESSFULLY.
-
PENANG BRIDGE, TEN OR SO YEARS AGO. THEY DID
B) KOREANS HAVE A RECORD OF BIDDING FIRST AND THINKING ABOUT THE DETAIL LATER.
C) KOREANS ALSO HAVE NO QUALMS ABOUT BIDDING FOR A PROJECT IN WHICH THEY ARE INEXPERIENCED AND LEARNING ON THE JOB. EX-CHAIRMAN CHUNG IS AFTER ALL WELL-KNOWN FOR HAVING STARTED THE HYUNDAI SHIPBUILDING COMPANY BY FIRST SECURING GREEK ORDERS FOR VLCC'S AND THEN BUILDING THE SHIPYARD.
D) LIKE ALL KOREAN CONGLOMERATES, HYUNDAI HAVE THEIR EYES ON THE LONG-TERM PROSPECT OF LUCRATIVE INFRASTRUCTURE PROJECTS IN CHINA AND NORTH KOREA. THEY THEREFORE HAVE EVERY INTEREST IN ENHANCING THEIR REGIONAL CREDIBILITY BY WINNING A PRESTIGE PROJECT OF THIS NATURE, PARTICULARLY IF THEY CAN BEAT JAPANESE COMPETITION. THEY COULD BE EXPECTED THEREFORE TO PUT IN A VERY LOW BID TO ASSURE THEMSELVES OF WINNING THE PROJECT, IN THE HOPE OF FUNDING ANY LOSSES FROM WITHIN THE CORPORATION.
·
6. ONE FINAL IF MINOR CONSIDERATION: ALL KOREA'S MAIN TRADING PARTNERS ARE GIVEN ONE OF THE MAIN CONGLOMERATES TO ACT AS THEIR 'MINDER' IN THE KOREAN MARKET. BRITAIN'S IS HYUNDAI: THE CHAIRMAN AND THEIR SENIOR EXECUTIVES ARE ALL WELL-KNOWN TO ME. NATURALLY, I HAVE NOT DISCUSSED THIS ISSUE OUTSIDE THE EMBASSY. WE COULD EASILY DO SO AND EXPAND ON THE ABOVE, IF SO INSTRUCTED.
WRIGHT
YYYY
ΜΑΙΝ
21
LIMITED
HKD
FED
4
MR BURNS
1
ECONOMIC ADVISERS
1
.(MR BROADBENT)
0
[CHARLTON]