TNAG-0759-FCO40-963-Manufacture-and-storage-of-explosives-in-Hong-Kong-1978 — Page 14

GR 265 IMMEDIATE

CONFIDENTIAL

f.s Cortanyi has passed

this news (not parasland 2) to A Barbie COPY-

who will discuss with his Charman and maybe take the matter up with a Dog T Master.

CYPHER/CAT A

No further adion

FM HONG KONG 261021Z

CONFIDENTIAL

fromms meanwhile. PA

$2315

TO IMMEDIATE F.C.O TELNO.662 OF 26 MAY 78.

་

YOUR TELNO.417: EXPLOSIVES PLANT.

HKK 084/1.

3 MAY 1978

23

1. THE EXECUTIVE COUNCIL WAS MUCH INFLUENCED BY THE LAST SENTENCE

OF THE REPORT OF THE CHIEF EXPLOSIVES OFFICER, AND BY THE GREATER

EXPERIENCE OF THE LOCAL USE OF SMALL DIAMETER TOVEX THAN OF IREMITE

17 (SEE PARAS C9, 13 AND 15 AND D2 OF ANNEX F OF XCC(78/43)), AND BY THE RELUCTANCE OF THE SPECIAL TENDER BOARD TO RECOMMEND 1.0.1 (SEE PARA.11 OF ANNEX G).

2. AGAINST THIS BACKGROUND THE COUNCIL'S VIEW WAS THAT THE BALANCE

WAS SIGNIFICANTLY IN DU PONT'S FAVOUR UNLESS THERE WERE OVERRIDING

POLITICAL OR SECURITY OBJECTIONS, AND THIS COULD NOT BE SAID TO

BE THE CASE. THE COUNCIL THEREFORE FELT THAT THE ACCELERATION OF

THE REPLACEMENT OF DYNAMITES BY WATER-GEL TYPE EXPLOSIVES, WOULD

BE BETTER SERVED BY DU PONT AND THE TENDER WAS AWARDED ACCORDINGLY.

3. IN GENERAL WITH MUCH EFFORT ON ALL OUR PARTS, BRITISH FIRMS HAVE DONE WELL RECENTLY IN COMPETING FOR PUBLIC AND QUASI-PUBLIC

TENDERS IN HONG KONG INVOLVING THE BACKING OF THE GOVERNMENT. I

VERY MUCH HOPE THAT THIS SUCCESS WILL CONTINUE: E.G IN THE M.T.R

EXTENSION AND K.C.R ELECTRIFICATION. BUT THEY CANNOT EXPECT TO WIN EVERY TIME, AND NOTHING WOULD BE MORE LIKELY TO PREJUDICE THEIR EXCELLENT PROSPECTS THAN INTERVENTION IN THIS CASE ON

POLITICAL GROUNDS.

p

4. I TRUST THAT IN ANY CORRESPONDENCE WITH 1.C. YOU WILL NOT

REVEAL THE CONTENTS OF PARAS.1 AND 2 WHICH ARE CONFIDENTIAL TO

THE EXECUTIVE COUNCIL. INCIDENTALLY THERE IS NOTHING TO STOP

1.0.1 FROM CONTINUING TO COMPETE IN THIS MARKET WITH IMPORTED

PRODUCTS.

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#

15.