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ALSO TALK OF THE IMPORTANCE OF ECGD'S POSITION. I THINK ALLEN UNDERSTANDS NOW THAT THE MACHINE HERE CANNOT DELIVER THE SORT OF ADVANCE INDICATION OF MORE OR LESS AD LIB COVER THAT HE WOULD LIKE, BUT THERE WERE HELPFUL IF OBLIQUE REFERENCES TO THE POSITION ON THE LANTAU FIXED CROSSING. IT WAS AGREED THAT FURTHER MORE DETAILED DISCUSSIONS WOULD BE REQUIRED ON EXPORT CREDIT IN A FEW MONTHS TIME WHEN THE BUSINESS PLAN WAS COMPLETE.
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ALLEN REMARKED THAT HE WOULD BE EXTREMELY ALARMED IF THE LANTAU FIXED CROSSING WENT TO THE KOREANS. SELF-EVIDENTLY, THAT LINK WAS FUNDAMENTAL TO THE ENTIRE OPERATION: AND TO GIVE IT TO A CONSORTIUM WHICH WHOLLY LACKED THE NECESSARY EXPERIENCE WOULD INVITE DELAY AND HAVE A DAMAGING EFFECT ON
CONFIDENCE IN THE PROJECT AS A WHOLE.
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WE EXPRESSED OUR DISAPPOINTMENT AT JP MORGAN'S APPOINTMENT: UK BANKS HAD BEEN VERY KEEN TO WIN THIS, AND HAD EXCELLENT CREDENTIALS. HE ACKNOWLEDGED THIS, BUT SAID THAT THE MORGAN TEAM HAD BEEN JUST AHEAD. COMMENT: KLEINWORTS HAVE TOLD ME THAT ALLEN HAS TOLD THEM THAT THE KEY POINT WAS THAT MORGAN WAS AHEAD ON THEIR GLOBAL PLACING POWER, AND THAT ALLEN HAD FELT THAT HE HAD TO GIVE THIS PRIORITY OVER THE STRAIGHT ADVISORY ELEMENT. WE SAID WE WERE ATTACHING GREAT IMPORTANCE TO UK INTERESTS IN RELATION TO THE AIRPORT DESIGN AND SITE PREPARATION CONTRACTS. OF THE THREE SHORT-LISTED ON THE FORMER, ALLEN APPEARED TO WRITE OUT THE SCOTT WILSON AND SBT CONSORTIUM: BUT WE COULD ELICIT NOTHING ON THE CHOICE BETWEEN THE REMAINING TWO. HE CONFIRMED THAT A FINAL DECISION WAS IMMINENT. HE IS OF COURSE WELL AWARE OF UK INTERESTS PURSUING THE SITE PREPARATION WORK. AS WE KNOW, THE DATE FOR BIDS HAS BEEN POSTPONED INTO MARCH AT, ALLEN EMPHASISED, THE COMPANIES' REQUEST.
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HALL AND ROGERS ALSO SAW MARTIN MARROW ON 6 FEBRUARY FOR A VERY BRIEF MEETING THEY HAD BEEN DELAYED ELSEWHERE. BARROW GAVE A FAIRLY OPTIMISTIC ACCOUNT OF MORE GENERAL DEVELOPMENTS FOR EXAMPLE ON IMPROVED CONSULTATION ARRANGEMENTS WITH THE PRC. HE WAS MODERATELY OPTIMISTIC ABOUT THE AJC'S PROSPECTS FOR THE LANTAU FIXED CROSSING, BUT EMPHASISED THAT IT WAS VITAL NOT TO TAKE THINGS FOR GRANTED: THE CONSORTIUM HAD TO UNDERSTAND THAT THEY WOULD HAVE TO WORK HARD TO WIN. THOUGH HE IS SCARCELY INDEPENDENT, HE CONFIRMED THE PICTURE THAT THERE IS A WIDESPREAD VIEW IN HONG KONG THAT THE KOREANS HAD A WHOLLY INADEQUATE TRACK RECORD, THAT IT WAS
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