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MDHIAN 0153 ·

COMPLEXITY OF THIS ONE, WHILE ANY DELAY IN THE BRIDGE PROGRAMME WOULD BE CATASTROPHIC FOR THE WHOLE AIRPORT PROJECT. TO WIN CREDIBILITY WITH THE HONG KONG ADMINISTRATION, TRAFALGAR HOUSE FOR ITS PART WILL HAVE TO DROP SOME OF THEIR QUALIFICATIONS ON THEIR BID. THEY WILL NOT DROP THEM ALL BY A LONG WAY, SINCE THEY REGARD THE TERMS OF THE CONTRACT AS SUICIDAL IF TAKEN AT FACE

VALUE: WE WILL HAVE TO HOPE THAT OTHER BIDDERS HAVE TAKEN A

SIMILAR VIEW.

4.

LIKE SEVERAL OTHER OF THE MEGA CONTRACTS DUE TO BE DECIDED IN HONG KONG THIS YEAR, THIS BRIDGE CONTRACT IS BIG ENOUGH TO PROVIDE A SIGNIFICANT FILIP TO THE UK ECONOMY AND TO PROVIDE

SIGNIFICANT EMPLOYMENT IN SEVERAL AREAS OF THE UK. AS IS WELL- KNOWN, PRESSURE ON THE HONG KONG ADMINISTRATION TO STEER THINGS THE BRITISH WAY HAS TO BE APPLIED SUBTLY IF IT IS NOT TO BE COUNTER-PRODUCTIVE. NEVERTHELESS I HOPE CONSIDERATION WILL BE

GIVEN TO WHAT CAN BE DONE.

5.

I SUGGEST SOME OR ALL OF THE FOLLOWING.

ADVANTAGE MIGHT BE TAKEN OF THE GOVERNOR'S CURRENT VISIT TO

LONDON THIS WEEK TO FIND OUT MORE PRECISELY THE STANDING OF THE UK BID AND THOSE OF OUR COMPETITORS. (ATTEMPTS TO EXPLORE THIS GROUND HERE HAVE BORNE LITTLE FRUIT. WHEN I TOOK THE BOTB CHAIRMAN, SIR DEREK HORNBY TO CALL ON THE GOVERNOR AND ON THE FINANCIAL SECRETARY LAST WEEK I HAD HOPED THAT SOME EXPLORATION OF THESE MATTERS MIGHT BE POSSIBLE IN THE PRIVACY OF THEIR ROOMS BUT NEITHER WAS PREPARED TO REVEAL ANYTHING THAT WE DID NOT KNOW ALREADY). ALSO TO INDICATE TO THE GOVERNOR THAT WE ARE HOPING FOR A BRITISH SUCCESS, WE WOULD LIKE TO BE KEPT ABREAST OF THEIR DELIBERATIONS ON THE BIDS, AND IF ANYTHING IN SUCH A MEETING CAN BE SAID TO GENTLY DISCREDIT THE KOREAN BID SO MUCH THE BETTER. A PERSONAL MESSAGE TO THE GOVERNOR AT SOME SLIGHTLY LATER STAGE COVERING SIMILAR GROUND MIGHT BE A POSSIBILITY. A MINISTERIAL VISIT WITH THIS DECISION IN MIND, ALTHOUGH NOT OF COURSE AS ITS PUBLICITY DECLARED OBJECTIVE, AS THE CONTEST REACHES A CRITICAL STAGE WHETHER IN MARCH OR APRIL, MIGHT ALSO BE DECISIVE, ALTHOUGH IT IS FOR A CONSIDERATION WHETHER MORE DIRECT DISCUSSIONS CANNOT TAKE PLACE IN LONDON THAN HERE. IN CONSIDERING ALL OR ANY OF THESE, AND I AM OF COURSE FULLY ALIVE TO THE SENSITIVITIES AND DIFFICULTIES, WE NEED TO KEEP CONSTANTLY IN MIND THAT TIME IS SHORT, THE CLOCK IS TICKING, AND WITHIN ANOTHER FEW WEEKS A DECISION WILL BE TAKING SHAPE AND IF IT IS GOING AGAINST US IT MAY THEN NOT BE EASILY REVERSIBLE.

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