HKA 182/3
TOP COPY Q DIST?
FM BTC HONG KONG
TO DESKBY 27093OZ INTRA
TELNO INTRA 199
OF 270845Z JULY
AND TO DESKBY 27093OZ PEKING
INFO IMMEDIATE ECGD, TREASURY, FCO
153
054331 MDHIAN 3388
DTI:
FOR HEAD OF PEP
PEKING: FOR MINISTER OF TRADE AND PARTY.
AIRPORT PROJECT, PLATFORM CONTRACT: CREDIT.
SUMMARY
1. HEAD OF THE AIRPORT AUTHORITY ADDRESSES URGENT LETTER TO MINISTER OF TRADE SEEKING A FIRM COMMITMENT BY WEDNESDAY 29 JULY OF ECGD COVER FOR THE PLATFORM CONTRACT. THREE OF THE FOUR CONSORTIA HAVE UK CONTENT. DECISION EXPECTED BEFORE THE END OF THE WEEK. REQUEST FOR INSTRUCTIONS.
DETAIL
2. RICHARD ALLEN, HEAD OF THE PROVISIONAL AIRPORT AUTHORITY, PASSED ME AN URGENT LETTER FOR THE MINISTER OF TRADE IN THE COURSE OF A LUNCH I GAVE TODAY FOR THE SECRETARY OF STATE. TEXT IN FOLLOWING FAX TO PEKING AND HEAD OF PEP.
3.
HE EXPLAINED THAT THE FOUR REMAINING BIDS FOR THE PLATFORM WERE BEING EVALUATED, WITH THE AIM OF SELECTING A LEAD BIDDER ON WEDNESDAY, PUTTING THE RECOMMENDATION TO THE HONG KONG GOVERNMENT THE FOLLOWING DAY AND ANNOUNCING THE SUCCESSFUL CONSORTIUM BEFORE THE END OF THE WEEK. THERE WILL, OF COURSE, BE NO CONTRACT AS YET PENDING A RESOLUTION OF THE AIRPORT ISSUES WITH CHINA, BUT THE AIM IS TO DECIDE QUICKLY WHO WILL DO THE JOB. THREE OF THE FOUR BIDS INCLUDE VARYING DEGREES OF UK CONTENT (IN ONE, BALFOUR BEATTY IS THE CONSORTIUM LEADER: IN THE OTHER TWO ARE COSTAINS AND MOWLEM). THE DUTCH CREDIT AGENCY, HE SAID, HAD BEEN DIFCULT BUT WAS NOW FALLING INTO LINE. HE CONSIDERED IT ESSENTIAL THAT THE PAA SHOULD HAVE CONFIRMATION THAT COVER WOULD BE MADE AVAILABLE: HE SOUGHT A FIRM COMMITMENT SUBJECT TO AGREEMENT ON DETAIL. SINCE HMG WAS PARTY TO THE AIRPORT MOU, QUITE APART FROM THE GENERAL UK ROLE IN HONG KONG, HE LOOKED TO ECGD TO SET THE
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