XN000022-1991-09-14 — Page 2

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SATURDAY, SEPTEMBER 14, 1991

JAPAN TRIP WAS WORTHWHILE: CHIEF SECRETARY

THE CHIEF SECRETARY, SIR DAVID FORD, SAID TODAY (SATURDAY) THAT HE WAS WELL PLEASED WITH HIS TRIP TO JAPAN WHICH HE DESCRIBED AS VERY WORTHWHILE.

SPEAKING TO REPORTERS AT THE AIRPORT, SIR DAVID SAID: "THE TIMING WAS GOOD IN THAT HAVING JUST HAD THE MEMORANDUM OF UNDERSTANDING SIGNED, THERE WAS OBVIOUSLY A GREAT DEAL OF INTEREST IN THE AIRPORT AND THE PORT PROJECT.'

"I

"WE ALWAYS ASSUME, I THINK, THAT EVERYBODY KNOWS EVERYTHING ABOUT OUR AIRPORT AND OUR PORT, AND ABOUT THE AGREEMENT; AND OF COURSE, THEY HAVE HEARD OF IT, BUT IT'S VERY USEFUL TO BE ABLE ΤΟ EXPLAIN FIRST-HAND WHAT WE ARE DOING," HE SAID.

"ALL THE MEETINGS I HAD WERE VERY USEFUL WITH A VERY WIDE RANGE OF PEOPLE. I MET CONTRACTORS; 1 MET FINANCIAL ADVISERS; I MET BANKERS; PEOPLE WHO ARE INTERESTED IN BIDDING FOR THE FRANCHISES, AND ALL OF THEM EXPRESSED A GREAT DEAL OF CONFIDENCE IN THE PROJECT NOW GOING AHEAD WITH THE POLITICAL CLOUDS BEING CLEARED AWAY, HE ADDED.

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THE CHIEF SECRETARY SAID TENDERS FOR THE AIRPORT PLATFORM, WHICH WOULD GO OUT TOWARDS THE END OF THIS YEAR, HAD ALSO LEAD то INCREASED INTEREST IN THE PROJECT.

HE

POINTED OUT THAT FUTURE OVERSEAS TRIPS TO EXPLAIN THE NEW AIRPORT AND PORT PROJECTS WERE BEING PLANNED: "WE HAVEN'T SINGLED OUT JAPAN, I THINK IT'S GOING TO BE IMPORTANT THAT WE DO SUCH VISITS ELSEWHERE TO THE UNITED KINGDOM, TO EUROPE AND TO THE UNITED STATES."

SIR DAVID SAID HE HAD HEARD CRITICISM AND HAD SEEN IT IN THE NEWSPAPERS THAT SEVERAL OVERSEAS CONTRACTORS ASSOCIATIONS WERE NOW CONSIDERING BOYCOTTING THE GOVERNMENT BECAUSE THE WAY CONTRACTS WERE

LET.

THE

[H+]

"I

OF

CAN ONLY SAY FROM THE JAPANESE POINT OF VIEW; I MET TWO LEADING CONSORTIA THERE. I ASKED THEM ABOUT THE

CONTRACT BRIDGE AND THEY SAID: YES, IT WAS A TOUGH CONTRACT, BUT THEY'VE HAD TOUGH CONTRACTS BEFORE

FIXED PRICE CONTRACTS, AND IT CERTAINLY WASN'T GOING TO DETER THEM FROM BIDDING, HF SAID.

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"WE ARE TRYING TO PROTECT OUR INTERESTS BY INSURING THAT WITH À FIXED PRICE CONTRACT WE KNOW THE PRICE OF THE BRIDGE

THE THROUGHOUT

WHOLE OF ITS LIFE.

"WE HAVE SEEN OTHER PROJECTS ELSEWHERE IN THE WORLD WHICH HAVE HAD VERY HEAVY OVERRUNS IN COST, AND WE'RE TRYING TO ENSURE, AS FAR AS THE HONG KONG TAXPAYER IS CONCERNED, THAT WE KNOW WHAT THE PRICE OF THE BRIDGE IS GOING TO BE. THAT'S WHY WE'VE GONE FOR THIS FIXED PRICE.

FOR

"CLEARLY THERE WILL BE A SMALL PREMIUM THAT WE'LL HAVE TO PAY UNUSUAL; THAT, BUT WE BELIEVE IT'S WORTHWHILE. IT'S NOT ALL THAT IT'S DONE QUITE A BIT IN THE PRIVATE SECTOR, THE CHIEF SECRETARY SAID.

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