TNAG-0759-FCO40-963-Manufacture-and-storage-of-explosives-in-Hong-Kong-1978 — Page 6

PERSONAL AND CONFIDENTIAL

From the

Senior British Trade Commissioner

teen Hugh,

I.C.I. SLURRY PLANT.

Akk 084/1.

INDEX

No

"IN 1978

OFFICER

PA

BRITISH TRADE COMMISSION, G.P.O. BOX 528,

HONG KONG.

1 June, 1978.

Tekend

9. Mr Plodaren.

Mr.

Thing "16

@

6/vi

Events moved very quickly after the receipt of your telegram 44 of 24 May and you should by now have received a personal (and blind copy of a letter which I sent to the Secretary of Economic Services covering a memorandum from I.C.I.'s local manager rebutting suggestions that I.C.I.'s technology was not up-to-date.

2.

I have, of course, been on dangerous ground because it was essential that I should not breech the confidences of the Environment and Economic Secretaries. At the same time I did all I could to ensure that the technical merits of I.C.I.'s products were known at the highest levels.

3. I have just learned that the axe has fallen and I.C.I. have received official notification that their bid has not been accepted. The Governor has confirmed the news and I in turn have informed him (again on a personal and confidential basis) of the arguments which I.C.I. are likely to deploy. For the moment I.C.I. simply propose to ask the Hong Kong Government by how much their bid fell short of Du Pont's offer.

4.

Sailed

9

I think I can do no more. I have stated pretty close to the wind in warning I.C.I. the way things were going and now that the Tender Board's decision has been confirmed by the Executive Council and announced to the bidders,I shall bow out. It is a pity that I.C.I. have lost the battle but we cannot win them all, In fact, if we have to lose one contract this is not one which would result in significant British exports to Hong Kong even though it could be detrimental to I.C.I.'s interests in the region. If an inquest results, I shall point out to I.C.I. that they seem to have failed to follow up the warnings that Jim Morrison gave them about the technical merits of their product following your own efforts on I.C.I.'s behalf during your visit to Hong Kong.

Yous ever

Such.

M. March

H.A.H. Cortazzi, Esq., CMG, Deputy Under Secretary of State, Foreign and Commonwealth Office,

London.

26

P.S. Since dichting The

PERSONAL AND CONFIDENTIAL

above I houve told 1.C.I that

can do we wor

for them.

beleive they have revived

similar welvice from you

in London.