TNAG-0759-FCO40-963-Manufacture-and-storage-of-explosives-in-Hong-Kong-1978 — Page 1

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A, B

C

MEMORANDUM FOR EXECUTIVE COUNCIL

MANUFACTURE OF WATERGEL EXPLOSIVES

ON STONECUTTERS ISLAND

FOREI

See

19 MAY 1973

ALLOGATIO

On 28th June 1977, after considering memorandum XCC(77)47, relating to the siting of a proposed manufacturing plant for watergel explosives, Honourable Members advised and the Governor ordered that a site on Stonecutters Island should be sold by a tender restricted to the two applicant companies, E. I. du Pont de Nemours and Company, Inc and Nobel's Explosives Company Limited. The tender procedure to be adopted was set out in memorandum XCC(76)77 which was annexed to memorandum XCC(77) 47. The approved basic terms, as set out in memorandum XCC(77) 47, and relevant sections on the Manufacture of Cartridge Watergel Explosives taken from memorandum XCC(76)77 are at Annex A and B respectively.

2

Because of the importance of the project to the two companies, and to ensure that the form of tender would not unreasonably exclude either party from bidding, drafts both of tender conditions and the information which would be required for the tender assessments were sent on two occasions to the companies for comment. Where possible, suggestions made by the companies were incorporated in the tender conditions and their comments were answered in writing. Special pains were taken to ensure that any information given to one applicant in response to any questions raised was also given to the other. Tender invitiations in the form attached at Annex C were finally issued on 23rd March 1978.

3

Within the tender period tenders were received from the applicants in the name of Du Pont (Hong Kong) Limited, a wholly-owned subsidiary of E.I. du Pont de Nemours and Company Inc and I. C. I. Limited of London, the parent company of Nobel Explosives Limited, both companies having sought and been given permission to tender in these names. The tender premia were respectively:

(a) Du Pont

(b) I.C.I.

$13,000,000

$20,025, 000

Copies of the additional information submitted by the two companies D, E with the tenders are at Annexes D and E respectively.

C.S. 166

CONFIDENTIAL

機密