CONFIDENTIAL
[W17
041042 MDLIAN 0.132
CONFIDENTIAL
FM BTC HONG KONG TO PRIORITY DTI
TELNO INTRA 31
OF 281034Z JANUARY 92
INFO PRIORITY FCO, ECGD
FOR HALL HEAD OF PEP
MY TELNO INTRA 23: HONG KONG AIRPORT PROJECT: MAIN BRIDGE CONTRACT
1. THE PRESENTATIONS BY THE TRAFALGAR HOUSE LED GROUP ON 27 JANUARY APPEAR TO HAVE GONE WELL. THEY HAVE BEEN TOLD BY ONE OR TWO SYMPATHETIC SOURCES ON THE HONG KONG GOVERNMENT SIDE THAT THEIR TECHNICAL PRESENTATION WAS THE BEST OF THE FOUR GROUPS, AND THAT THEY RESPONDED WELL TO QUESTIONS. THE FINANCIAL PRESENTATION IN THE AFTERNOON WAS A LITTLE MORE BLAND AND THERE WERE NOT MANY QUESTIONS IN RESPONSE TO THEIR PROPOSALS. NEVERTHELESS THAT SEEMS TO HAVE GONE WELL ALSO. THE STRONG AJC TEAM HERE FOR THE PRESENTATION IS WORKING ON REDUCING THE SCOPE AND NUMBER OF CONDITIONS WHICH THEY HAD PUT ON THEIR BID. APPARENTLY SIR ERIC PARKER WHEN HERE LAST WEEK BECAME CONVINCED THAT THEY HAVE A REAL CHANCE OF SUCCESS BUT THAT THEIR CONDITIONS WERE A MAJOR OBSTACLE. SIR GORDON MANZIE TELLS ME THERE ARE CERTAIN STICKING POINTS THAT CANNOT BE REMOVED BUT HE IS CONFIDENT THAT THEY CAN SIGNIFICANTLY REDUCE THE ORIGINAL LIST OF QUALIFICATIONS.
2. THE HONG KONG SIDE WILL NOW ASSESS THE RESULTS OF THE FOUR PRESENTATIONS. WE WILL OF COURSE TRY TO GET NEWS OF THEIR THINKING ALTHOUGH THAT IS NOT LIKELY TO BE EASY. SIR GORDON MANZIE SAYS HE HOPES THEY WILL HEAR SOMETHING MORE BY MID- FEBRUARY.
3. MEANWHILE THE HEAD OF BECHTEL PROJECT MANAGEMENT TEAM HAS TOLD ME IN STRICT CONFIDENCE THAT THE FRENCH LED GROUP ALSO IMPOSED AS MANY QUALIFICATIONS ON THEIR BID AS DID AJC. I HAVE PASSED THIS ON IN STRICT CONFIDENCE TO SIR GORDON MANZIE WHO FOUND IT REASSURING.
4. PROSPECTS I BELIEVE ARE LOOKING GOOD FOR THE BRITISH LED GROUP. THEY THEMSELVES ARE RELATIVELY CONFIDENT. EARLY PRIORITY OBJECTIVES SHOULD BE TO TRY TO GET THE JAPANESE ELIMINATED IF, WE SUPPOSE, THEY ARE THE HIGHEST BIDDER, AND THEN TO DISCREDIT
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AS
THIS IS A COPY
THE ORIGINAL HAS BEEN
CLOSED UNDER
FOI EXEMPTION NO. 27(1)