HOFO 037/24
O DO I
DESKBY 241180Z
00 PARIS
DESKBY 241100Z
GR %410
CONFIDENTIAL
DESKBY 241100Z
HKK 164/1
(312)
See 315
Plain copies Persoal for Doz - De Benjamin
RECEIVED IN REGISTRY NO. 1 27 NOV 1978
DESK OF
INDEX
No
FM BTC HONG KONG 240953Z NOV 78
TO IMMEDIATE D.0.1
TELNO.INDUS 208 OF 24 NOVEMBER,
AND TO IMMEDIATE PARIS (FOR LIPPITT).
PERSONAL FOR BENJAMIN.
VZ STRIBUTION
Dup:
Ction Tor
CHK+
NOT ON
ens
TRED (2) 4x)
DOI copy.
MY TELEPHONE CONVERSATION WITH LIPPITT.
عم
in Tampm Ty
CASTLE PEAK POWER STATION: STRUCTURAL STEEL WORK CONTRACT.
1. I FEAR THAT CLP WOULD NOT BE PREPARED TO AWARD A CONTRACT TO
CLEVELAND BRIDGING AND ENGINEERING COMPANY EVEN IF THEIR PRICE
WAS SATISFACTORY. STONES TOLD ME IN STRICT CONFIDENCE THAT CLP
ACCEPT THE RECOMMENDATION OF THEIR BRITISH CONSULTANTS L.G.MOUCHEL AND PARTNERS, THAT CLEVELAND'S PERFORMANCE ON THE ISLE OF GRAIN PROJECT IN KENT WAS POOR DUE PRINCIPALLY TO AN UNSATISFACTORY
MANAGERIAL PERFORMANCE. STONES SAID THAT CLP'S OWN INVESTIGATIONS
CONFIRM THIS VIEWPOINT AND NEITHER HE NOR HIS BOARD WOULD CONSIDER
APPOINTING CLEVELAND. HE REMINDED ME THAT CLEVELAND HAD SUBMITTED
AN UNSOLICITED BID AND THAT CLP HAD NOT WELCOMED THEIR LAST MINUTE
EMERGENCY ARRANGEMENTS TO ESTABLISH A FRONT COMPANY IN HONG KONG
1.E STALLION CO.LTD.
2. STONES ASKED ME TO PASS ON HIS PERSONAL ADVICE THAT ANY BRITISH
GOVERNMENT SUPPORT FOR CLEVELAND WOULD BE A WASTE OF TIME AND ENERGY. WHEN I ASKED WHETHER ANY OF THE OTHER BRITISH BIDDERS WERE IN THE RUNNING (SEE OUR TEL INDUS 126 OF 15 SEP TO KESTEN)
HE SAID THAT THE BEST BRITISH PRICE FOR THE STEEL SUPPLY, FABRICATE AND ERECTION WAS NINETY PERCENT ABOVE THE LOWEST TENDER AND FORTY
PERCENT HIGHER EVEN WHEN THE STEEL WAS BROUGHT IN FROM KOREA.
3. I DO NOT THINK I CAN DO ANYTHING TO PERSUADE STONES AND OTHER
MEMBERS OF HIS BOARD TO OVER-RIDE THE RECOMMENDATION OF THEIR BRITISH CONSULTANTS WHO ARE WELL RESPECTED LOCALLY. I SHALL TELL
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