RESTRICTED

HKA 182/3

RESTRICTED

FM BTC HONG KONG TO IMMEDIATE DTI TELNO INTRA 122

OF 060915Z MAY 92

AND TO IMMEDIATE F C O

INFO PRIORITY SEOUL, TOKYO, PEKING

116

161234

MDHIAN 2856

TOP COPY Q DIST ?

1615

FOR HALL, HEAD OF PEP

109

MY TELNO 129 TO FCO: HONG KONG AIRPORT PROJECT: MAIN BRIDGE CONTRACT

1.

THE AWARD OF THIS CONTRACT WILL BE ANNOUNCED TOMORROW, 7 MAY. THE PLANNED TIME-TABLE IS AN ANNOUNCEMENT TO A SPECIAL MEETING OF THE FINANCE COMMITTEE OF LEGCO AT 1030 (LOCAL) AT WHICH NO PRESS OR PUBLIC WILL BE PRESENT, TO BE FOLLOWED BY A 12 NOON PRESS CONFERENCE WHERE THE AWARD WILL BE MADE PUBLIC, AND A 1430 ANNOUNCEMENT TO A PRELIMINARY MEETING OF THE AIRPORT CONSULTATIVE COMMITTEE WHICH WILL BE OPEN TO THE PUBLIC. THERE WILL LATER BE PRIVATE BRIEFINGS TO EDITORS. EACH OF THESE EVENTS WILL BE CHAIRED BY K Y YUENG, SECRETARY TO THE TREASURY. ALL THE TENDERS WILL BE NOTIFIED BY FAX AT 0900.

2.

ALTHOUGH MEMBERS OF THE ADMINISTRATION ARE STILL RESOLUTELY REFUSING TO IDENTIFY THE WINNER, THERE IS NO REMAINING DOUBT THAT IT IS THE ANGLO-JAPANESE GROUP. AT TOMORROW'S PRESENTATIONS ALL THE BID PRICES WILL BE REVEALED. THE ANGLO-JAPANESE BID WAS HKD 7.14 BILLION AND THAT OF THE FRENCH LED GROUP HKD 7.3 BILLION. THE HONG KONG ADMINISTRATION EXPECT THE NARROWNESS OF THIS DIFFERENCE TO GIVE THEM AS MUCH TROUBLE AS THE MUCH CHEAPER HYUNDAI BID.

3. THE HK ADMINISTRATION WILL BE STRESSING IN THEIR PRESENTATIONS THAT THE AWARD HAS GONE TO THE GROUP JUDGED TO BE THE MOST RELIABLE AT THE BEST PRICE WITH THE BEST PROSPECT OF COMPLETING ON TIME: THEY WILL SAY IT WAS THE LOWEST ACCEPTABLE TENDER AND ON THAT BASIS IS A CLEAR WINNER. THEY ARE ANXIOUS THAT THE JAPANESE ELEMENT BE PLAYED UP TO THE POINT WHERE THEY HAVE ASKED ME TO SUGGEST TO SIR GORDON MANZIE (WHO ARRIVES FROM LONDON TODAY TO BE HERE FOR THE ANNOUNCEMENT) THAT HE SHOULD ONLY MAKE ANY COMMENTS ON THE AWARD WHEN HE HAS A JAPANESE PARTNER WITH HIM TO ECHO HIS VIEWS. I HAVE SUGGESTED THAT THIS MAY NOT BE VERY

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