CONFIDENTIAL
176760
MDHOAN 2600
CONFIDENTIAL
FM FCO
TO DESKBY 23003OZ HONG KONG
TELNO 1088
OF 22170OZ DECEMBER 93
AND TO IMMEDIATE BTC HONG KONG
INFO IMMEDIATE PEKING
Personal for Dinham, Government House
CALL BY LORD PRIOR ON MR GOODLAD
1. Lord Prior accompanied by John Lippett called on Mr Goodlad today to seek assistance on the following two issues.
(i) MTRC TENDER FOR ROLLING STOCK FOR AIRPORT RAILWAY
2.
Lord Prior said that GEC along with 3 other companies had submitted tenders for the MTRC rolling stock contract for the airport railway. He explained that the MTRC normally invited discussion with tenderers after initial bids, thus giving each
an opportunity to put forward a revised (Lower) bid. GEC had submitted a relatively high initial bid with a view to offering a Lower price after discussion with the MTRC. However, on this occasion the MTRC had not invited GEC into further discussion. GEC are very worried and want the normal procedure to be followed this time also. GEC had been unable to find out why the MTRC had altered its approach, but Lord Prior thought it might be because the MTRC did not want to give the impression of giving preferential treatment to a British company (a fear he thought unjustified as the tendering process is monitored closely by the ICAC). GEC are naturally concerned given the value of this contract and complained that they could not get close to a very old customer. Lord Prior asked whether it would be possible for HKG to make discreet enquiries to ascertain the MTRC's intentions.
3. After the meeting Lippett telephoned Mr Goodlad to say that he has now been very reliably informed that the main reason GEC were not called for further consultions was because the Chinese were pressing for no British contractors to be considered for the project. GEC say that this is the strongest indication that they have had that the Chinese are trying to persuade companies to discriminate against British firms.
1
PAGE
CONFIDENTIAL