CONFIDENTIAL
050345
MDHIAN 3170
PERCENT. WE ARE NOT HOWEVER BATTING ON ANY PARTICULAR GROUP'S BEHALF GIVEN THE UNCERTAINTY OVER THE UK CONTENT IN THE BIDS.
4. MR NEEDHAM (MINISTER FOR TRADE) IS IN HONG KONG AT PRESENT AND IS BEING KEPT FULLY BRIEFED. HE WILL SPEND TWO HOURS WITH THE PAA TOMORROW MORNING. THE POSITION MAY BE A LITTLE CLEARER AFTER THAT MEETING. THE TIMETABLE AS WE UNDERSTAND IT, IS THAT THE PAA WILL AIM TO REDUCE THE SHORT-LIST OF FOUR TO TWO BY MONDAY 27 JULY, AND TO RECOMMEND ONE TO HKG BY MID-NEXT WEEK. RICHARD ALLEN HOPES TO BE IN A POSITION TO INFORM THE SUCCESSFUL BIDDER BY THE END OF NEXT WEEK. THE POSITION REGARDING THE AWARDING OF THE CONTRACT IS HOWEVER LESS CLEAR. THE PAA WILL NOT BE IN A POSITION TO AWARD A CONTRACT UNTIL THEY RECEIVE THE GO-AHEAD FROM HKG, AND THIS IS COMPLICATED BY THE DEADLOCK IN THE FINANCING TALKS WITH THE PRC. BUT THEY MAY BE ABLE TO ISSUE A CONDITIONAL LETTER OF INTENT BEFORE THEN. THE INDICATIONS ARE THAT WORK ON THE AIRPORT PLATFORM WILL NOT NOW START UNTIL THE END OF THIS YEAR. THE BIDS, AS SUBMITTED TO THE PAA, ARE VALID UNTIL OCTOBER ONLY SO SOME UPWARD ADJUSTMENT TO TAKE ACCOUNT OF INFLATION MAY BE NECESSARY. BALFOUR BEATTY SEEM TO HAVE HAD MORE MEETINGS WITH THE PAA THIS WEEK THAN ANY OF THE OTHER GROUPS. THEY INTERPRET THIS AS ENCOURAGING. THEIR TALKS ON THE TECHNICAL ASPECTS OF THEIR BID HAVE ALSO GONE WELL. SIR ROBERT DAVIDSON AND HIS TEAM FROM THE UK ARE HAVING A FINAL MEETING THIS MORNING WITH OAKERVEE (PAA PROJECT DIRECTOR). AS FAR AS WE KNOW, COSTAIN AND MOWLEM HAVE ALREADY ENDED THEIR SESSIONS WITH THE PAA. BOTH ARE BEING VERY COY ABOUT PRONOUNCING ON THEIR CHANCES.
5. WE WILL REPORT FURTHER NEXT WEEK WHEN THE POSITION SHOULD BE CLEARER.
DAY
YYYY
ΜΑΙΝ
30
DISTRIBUTION
37
.HONG KONG AIRPORT RESTRICTED
HKD
LEGAL ADVISERS//MISS BROOKS PUSD//HD
PLANNERS//HD
RAD//MR WYE
PS
PS/MR GOODLAD
PAGE
2
CONFIDENTIAL