CONFIDENTIAL
141110
MDLOAN 9232
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
ENDS
HURD
YYYY
ΜΑΙΝ
SINGLE COPIES
NNNN
1
DISTRIBUTION
1
HKD
PAGE 3 CONFIDENTIAL