060805Z
COMMENT:
¥
UNCLASSIFIED
FM BTC HONG KONG
TO IMMEDIATE FCO
TELNO 129
OF 06041OZ MAY 92
AND TO IMMEDIATE DTI
INFO PRIORITY SEOUL, TOKYO, PEKING, ECGD
DTI (FOR HALL, HEAD OF PEP)
HONG KONG AIRPORT PROJECT: MAIN BRIDGE CONTRACT
HKA 182/3
1. LOCAL RADIO LAST NIGHT (5 MAY) AND MOST NEWSPAPERS THIS MORNING (6 MAY) REPORT THAT THE EXECUTIVE COUNCIL HAS ENDORSED THE RECOMMENDATION OF THE CENTRAL TENDER BOARD TO AWARD THE CONTRACT TO THE ANGLO-JAPANESE CONSORTIUM. THE REPORTS HIGHLIGHT THE FACT THAT THE AJC BID WAS, AT HKD7.2 BILLION, OVER HKD2 BILLION MORE THAN THAT SUBMITTED BY HYUNDAI.
2. THERE HAS SO FAR BEEN LITTLE COMMENT. COMPLAINTS BY HYUNDAI OVER DEMANDS FROM HKG FOR ADDITIONAL FINANCIAL GUARANTEES ARE REPORTED AND A MEMBER OF THE AIRPORT CONSULTATIVE COMMITTEE (MR LEUNG) HAS SAID THE HKG HAS DAMAGED THE REPUTATION OF HYUNDAI AND THE KOREAN GOVERNMENT IN CASTING DOUBTS ON THE FIRM'S ABILITY TO COMPLETE THE CONTRACT. MR ALBERT CHAN, A UDHK MEMBER OF THE LEGISLATIVE COUNCIL, SAID ON THE RADIO THIS MORNING THAT THE HKG WILL NEED TO EXPLAIN TO LEGCO TOMORROW, WHY IT GRANTED THE CONTRACT TO A GROUP WITH A HIGHER BID. THEY WOULD ALSO HAVE TO EXPLAIN WHY A BRITISH COMPANY HAD WON A FURTHER CONTRACT IN ORDER TO ASSURE THE PUBLIC THAT THE TENDER SYSTEM IS FAIR.
HEAP
YYYY
ADVANCE
12
HONG KONG AIRPORT GENERAL PS
PS/MR GOODLAD
PS/PUS
SIR J COLES
MR BURNS
HKD//HD
FED//HD
NEWS D//HD
NO 10//SIR P CRADOCK
DTI//HALL/HD/PEP
RESIDENT CLERK
MAIN
84
1
1
1
1
1
1
1
1
1
1
1
1
.HONG KONG AIRPORT GENERAL
1
HKD
PUSD
ECONOMIC ADVISERS
ERD
FED
9
26
4
7
4
JOINT DIRECTORATE
5
LEGAL ADVISERS//MS BROOKS
1
.AND MS BARRETT
1
NEWS D
9
(109