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035724
MDHIAN 0743
POLITICAL AS WELL AS A COMMERCIAL IMPACT IN THE UK.
3. ROGER MOSS, FINANCIAL DIRECTOR OF THE MASS TRANSIT RAILWAY (MTR) (AND A FORMER FINANCIAL DIRECTOR OF BRITISH AIRWAYS) WILL ALSO BE IN LONDON FOR THE SAME WEEK. HE HAS ALSO ASKED ME WHETHER HE SHOULD SEE ANYONE IN THE DTI OR FCO OR ECGD. I HOPE VERY MUCH THAT SUITABLE APPOINTMENTS MIGHT BE FOUND FOR HIM ALSO. HE WILL PLAY A VERY CRITICAL ROLE IN THE AWARD OF CONTRACTS RELATING TO THE RAIL LINK TO THE AIRPORT, AN AREA IN WHICH BRITISH COMPANIES STAND A BETTER THAN AVERAGE CHANCE AND WHERE CONTRACTS WORTH MANY HUNDREDS OF MILLIONS OF POUNDS WILL BE AT STAKE. I APPRECIATE THAT A MINISTERIAL CALL MAY BE A LITTLE HARDER IN THIS CASE, ALTHOUGH IT WOULD BE VERY VALUABLE IF IT WERE POSSIBLE, BUT SUGGEST THAT IN ANY EVENT A CALL ON THE HEAD OF ECGD AND HALL, HEAD OF PEP, AND IF AT ALL POSSIBLE BURNS, FCO, WOULD BE EXTREMELY HELPFUL. MTR WILL HAVE A ROLE GOING BEYOND THE RAILWAY LINK IN FINANCING THE WHOLE PROJECT SINCE THEY ARE HONG KONG'S
FORMOST INTERNATIONAL BORROWER AT PRESENT.
4"
SEVERAL AIRPORT RELATED CONTRACTS ARE AT A VERY CRITICAL STAGE. FOR THE MAIN BRIDGE CONTRACT, TRAFALGAR HOUSE ARE MAKING A PRESENTATION AND RESPONDING TO QUESTIONS ON THEIR BID, TODAY 27 JANUARY AND TOMORROW. FOR THE TERMINAL DESIGN CONTRACT, A SHORTENED SHORT LIST, AS IN MY TELNO INTRA 25, MADE PRESENTATIONS BETWEEN 22 AND 24 JANUARY. SUBSEQUENT TO THAT TELEGRAM I MET WITH NORMAN FOSTER, WHOSE COMPANY, TOGETHER WITH BAA, REPRESENT THE LARGEST BRITISH INTEREST, AND EXPLAINED WAYS IN WHICH WE COULD SUPPORT THEM. A DECISION ON THIS CONTRACT MAY BE MADE THIS WEEK.
5.
ALSO OVERDUE IS A DECISION ON THE CONTRACT FOR FINANCIAL ADVISERS TO THE PROVISIONAL AIRPORT AUTHORITY FOR WHICH MANY
BRITISH MERCHANT BANKS ORIGINALLY COMPETED. RICHARD ALLEN AND OTHERS WHO I HAVE CONSTANTLY QUESTIONED ON THIS HAVE BEEN VERY TIGHT-LIPPED, BUT IT APPEARS THAT THE SHORT LIST LIES BETWEEN GOLDMAN SACHS AND J.P. MORGAN, BOTH USA, AND WARDLEY, A SUBSIDIARY OF HONG KONG AND SHANGHAI BANK. THAT TOO WILL BE ANNOUNCED THIS WEEK, AND THE PRESS SUGGESTS THE AMERICANS ARE FAVOURED. ANOTHER SOURCE TELLS US IT WILL BE J.P.MORGAN. IT WILL
BE A GREAT PITY AND WOULD NOT AUGUR WELL FOR BRITISH INTERESTS IF
A USA BANK WAS SUCCESSFUL, GIVEN THE CONSIDERABLE US INFLUENCE ON THE FINANCIAL SIDE ALREADY EXERTED THROUGH MORGAN STANLEY'S APPOINTMENT LAST YEAR AS OVERALL FINANCIAL ADVISERS TO THE WHOLE PROJECT.
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