TNAG-0563-FCO40-658-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 38

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2. THOMPSON SAID HIS INFORMATION WAS THAT LACK OF INTEREST BY BRITISH CONSTRUCTION FIRMS AROSE FROM COMPLAINTS THAT THE SCHEME HAS BEEN FRAGMENTED AND A FEELING THAT THE AUTHORITY SHOULD HAVE GONE BACK TO THE ORIGINAL CONSORTIA FOR A PACKAGE. IN ADDITION,

MENTATION, WHO DID THE ORIGINAL COSTING, HAD ADVISED THAT GROUND CONDITIONS IN THE NATHAN ROAD AREAS WERE SUCH THAT ANY FIRM WOULD

DE UNWISE TO TENDER OTHER THAN ON A COST PLUS DASIS. A FURTHER

FACTOR WAS THAT ALL MAJOR CONTRACTORS WERE ALREADY HEAVILY COMMITED

IN THE MIDDLE EAST. THOMPSON'S ANSWERS TO THESE COMPLAINTS WERE THAT IT WAS IN FACT MEMBERS OF THE ORIGINAL CONSORTIA, OTHER THAN THE BRITISH, WHO WERE SHOWING INTEREST ON THE CIVIL SIDE. NONE OF THESE HAD RAISED THE QUESTION OF THE GROUND CONDITIONS, ABOUT WHICH A GREAT DEAL WAS NOW KNOWN, OR COMPLAINED ABOUT THE SCHEME BEING FRAGMENTED. PROBLEMS SUCCH AS GROUND CONNDITIONS WERE, IN ANY CASE, ONES TO BE RAISED WHEN FIRMS QUOTED, RATHER THAN WHEN THEY REGISTERED. HE RECOGNISED THAT BRITISH FIRMS MIGHT HAVE HEAVY COMMITMENTS ELSEWHERE, BUT SOME MIGHT MISS OUT ON CONTRACTS AND REGRET THAT THEY HAD NOT TAKEN THE OPPORTUNITY TO REGISTER FOR THE

HONG KONG MASS TRANSIT.

3. THOMPSON STRESSED THAT A GREAT DEAL OF DETAILED INFORMATION WAS

NOW AVAILABLE AND THAT THE CORPORATION WOULD ADOPT A FLEXIBLE

APPROACH WHICH WOULD PROVIDE FOR A DEGREE OF NEGOTIATION WHEN

TENDERS WERE CONSIDERED. WHILE THE CORPORATION WOULD BE RESPONSIBLE

TO THE GOVERNMENT AS A SHAREHOLDER, THE NEGOTIATIONS THEMSELVES WOULD BE CARRIED OUT BY THE EXECUTIVE DIRECTORS. (HE WAS SUGGESTING, IN OTHER WORDS, THAT BRITISH COMPANIES WOULD FIND THEMSELVES TALKING TO BUSINESSSMEN WHO UNDERSTOOD THEIR PROBLEMS).

4. I HAVE SINCE SEEN A LIST OF FIRMS WHICH HAVE REGISTERED SO FAR. THE FOLLOWING ARE THE FOREIGN ONES:

(1)

HOCHTIEF OF GERMANY IN CONJUNCTION WITH GAMMONS (CONTRACTS

11 TO 15):

(11) S.I.M.E. OF ITALY (CONTRACTS 11 TO 20):

(111) KAISER STEEL OF U.S.A. (CONTRACTS 11,12,15 AND 17 TO 19)

(IV) INTERMETRO OF ITALY (CONTRACTS 11 TO 15)

(V)

KOMAGAT GUMI OF JAPAN (CONTRACTS 11 TO 15) AND A LOCAL BRANCH OF THE SAME FIRM (CONTRACTS 1, 2 AND 5 TO 12). A NUMBER CF LOCAL FIRM'S HAVE ALSO REGISTERED FOR CONTRACTS 1 TO 10 AND

21 TO 25.