RESTRICTED
RESTRICTED COMMERCIAL IN CONFIDENCE
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FM BTC HONG KONG
TO PRIORITY DTI
TELNO INTRA 170
OF 2909OOZ JUNE 92
INFO ROUTINE FCO, ECGD, PEKING
FOR HALL, HEAD OF PEP
Mr Dy 30/0
M. Ric
Reprece
was
TAW148)
155515
MDLIAN 5613
Batich ра винито праб
made to this development
HK TAG meeti
НК
at today! Costaini are very aggriev
MY TELNO INTRA 97: WESTERN HARBOUR CROSSING
·
·
ieved!
Mwem. 3/6 3%
1. IT WAS REPORTED IN TODAY'S SOUTH CHINA MORNING POST THAT THE WHARF CONTROLLED CROSS HARBOUR TUNNEL COMPANY (CHT) AND CITIC
PACIFIC HAVE OPTED TO SUBMIT A JOINT APPLICATION TO HKG ON FRIDAY
3 JULY THE CLOSING DATE, FOR THE FRANCHISE TO OPERATE THE WESTERN HARBOUR CROSSING TUNNEL. ALTHOUGH THIS HAS NOT BEEN CONFIRMED BY EITHER GROUP OR INDEED BY HKG, WE UNDERSTAND THAT THE SCMP REPORT IS ESSENTIALLY CORRECT. UNDER THE NEW ARRANGEMENT THE GROUP OF COMPANIES WHICH SUBMITTED A PROPOSAL TO
CHT (VIZ MOTTS, AOKI, COSTAIN, TARMAC AND CHRISTIANI NIELSEN) WILL BE DROPPED AND KUMAGAI GUMI AND NISHIMATSU WILL BUILD THE TUNNEL. COSTAIN HAVE NOT YET BEEN FORMALLY TOLD ABOUT THE NEW ARRANGEMENT BUT WATKINSON (LOCAL COSTAIN DIRECTOR) IS MEETING
HIGGINSON (MANAGING DIRECTOR OF CHT) LATER THIS AFTERNOON AND
WILL PRESUMABLY BE INFORMED THEN. THE DECISION WAS APPARENTLY
TAKEN AT A WHARF BOARD MEETING ON FRIDAY 26 JUNE.
2. THIS IS DEVASTATING NEWS FOR COSTAIN WHO EARLIER FELT
CONFIDENT THEY WERE WELL PLACED TO SECURE THE CONTRACT. THEIR BID COSTS WERE, AS YOU KNOW, SUBSIDISED FROM OPF. WE CAN ONLY ASSUME AT THIS STAGE THAT CHT CONCLUDED FROM INFORMATION
AVAILABLE TO THEM THAT THEY COULD NOT MATCH CITIC'S BID AND THAT
THEIR ONLY HOPE OF AN INVOLVEMENT IN THE OPERATION OF THE NEW
TUNNEL LAY IN BEING ABLE TO JOIN RANKS WITH CITIC. AND CITIC CLEARLY SEE ADVANTAGE IN TAPPING CHT'S EXPERTISE: THEY POSSIBLY
ALSO SEE AN OPPORTUNITY TO EXTEND THE JOINT VENTURE TO INCLUDE THE ORIGINAL CROSS HARBOUR TUNNEL WHEN CHT'S CURRENT FRANCHISE
ENDS IN 1999.
3.
WE WILL DOUBTLESS BE SEEING PETER WOO (CHAIRMAN OF THE WHARF)
BEFORE TOO LONG ABOUT THIS AND OTHER MATTERS AND IT WOULD BE HELPFUL TO HAVE A NOTE OF POINTS RAISED AT HIS DINNER WITH THE
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