RESTRICTED
055266
MDHIAN 1537'
POWER (CLP) ARE LIKELY TO AWARD THE CONTRACT FOR A NEW POWER STATION, WORTH MORE THAN POUNDS 1 BILLION, BEFORE THE YEAR IS OUT. OTHER MAJOR CONTRACTS, FOR POWER STATIONS, RAILWAYS, ROADS ETC. FOR WORK TO BE DONE ELSEWHERE IN THE PACIFIC RIM WILL BE AWARDED BY HONG KONG BASED COMPANIES WHO ARE UNDERTAKING THESE PROJECTS. KEEPING OUR EYE ON THESE PROJECTS AND DOING EVERYTHING WE POSSIBLY CAN TO ADVANCE THE CAUSE OF THE BRITISH COMPANIES COMPETING FOR THEM, WILL TAKE NOT ONLY ALL THE ENERGIES OF THIS POST BUT WILL WARRANT THE CLOSE ATTENTION OF MINISTERS AND
OFFICIALS IN BRITAIN.
3.
THE CATALOGUE OF THE MAJOR PROJECTS IS WELL-KNOWN TO THOSE DIRECTLY CONCERNED IN THE FCO AND DTI. A SUMMARY OF THE LATEST POSITION, AND BRITISH PROSPECTS, NEVERTHELESS MAY BE HELPFUL.
4.
FIRST TO BE DECIDED WILL BE THE CHING MA BRIDGE, SOMETIMES DESCRIBED AS THE LANTAU FIXED CROSSING. IT WILL BE THE WORLD'S SECOND LONGEST SINGLE SPAN SUSPENSION BRIDGE. IT WILL BE THE WORLD'S LONGEST SUSPENSION BRIDGE BY A LONG WAY TO CARRY A RAILWAY CAND THE EXTRA STRENGTH REQUIRED TO ACCOMMODATE THAT RAILWAY WILL ACCOUNT FOR 60 PERCENT OF THE TOTAL COST) SO IT WILL REQUIRE UNTESTED TECHNOLOGY. FOUR GROUPS HAVE BID. NONE IS WHOLLY BRITISH, BUT THAT COMPRISING TRAFALGAR HOUSE, COSTAIN AND MITSUI IS LARGELY SO. BIDS WERE SUBMITTED IN MID-DECEMBER. WE BELIEVE THE LARGELY BRITISH BID WAS SECOND BUT THIS HAS NOT BEEN CONFIRMED. WE DO KNOW THAT THE KOREAN BID WAS THE CHEAPEST BY A COMFORTABLE MARGIN. I HOPE IT WILL BE POSSIBLE TO CONVINCE THE HONG KONG GOVERNMENT THAT IT WILL BE TOO RISKY TO ENTRUST THIS BRIDGE, THE COMPLETION OF WHICH ON TIME WILL BE CRUCIAL TO THE WHOLE AIRPORT UNDERTAKING, TO THE KOREAN GROUP WHO HAVE HAD SO LITTLE EXPERIENCE OF LARGE BRIDGES. IF THAT MESSAGE CAN BE GOT ACROSS THEN THERE IS EVERY PROSPECT OF A VERY MAJOR BRITISH COMMERCIAL SUCCESS INDEED. EVERYONE IN BRITAIN WAS AWARE HOW HARD HMG FOUGHT FOR BRITISH SUCCESS IN THE BOSPORUS I BRIDGE (SUCCESSFULLY) AND FOR BOSPORUS II BRIDGE (UNSUCCESSFULLY). WE HAVE NOT YET SEEN IT MAKE SUCH STRENUOUS EFFORTS TO LAND THIS CONTRACTS, BUT I HOPE THAT WE WILL IN THESE COMING WEEKS. A DECISION IS PROMISED BY MAY BUT MAY COME EARLIER.
5. ON 21 FEBRUARY BIDS CLOSE FOR THE AIRPORT PLATFORM. THIS WILL REQUIRE MOVING MORE EARTH AND ROCK, AND THE FILLING IN OF MORE SEA THAN HAS EVERY BEEN DONE BEFORE IN THE WORLD IN SO SHORT A TIME AS THAT ALLOCATED FOR IT. THE CONTRACT IS LIKELY TO BE WORTH CLOSE TO POUNDS 1 BILLION. TWO OF THE SHORT LISTED GROUPS
PAGE 2 RESTRICTED