TNAG-1030-FCO40-1280-Proposed-visit-by-Humphrey-Atkins--Lord-Privy-Seal--to-Hong--1981 — Page 205

RESTRICTED

he

4 There are a number of highly significant Defence Sales prospects for Iraq, on which Mr Biffen will require briefing; has offered to take a Defence Sales official with him, if Mr Nott so wishes.

5

The following major projects are likely to merit Mr Biffen's support; he mentioned (a) to (e) below to the Iraqi Trade Minister during the latter's visit to London in June:

(a) Baghdad Metro. The British Metro Consultants Group

(BMCG) have been appointed general consultants for the Baghdad Metro receiving considerable assistance, including Ministerial intervention, in the run-up to contract award. We expect to capitalise on the BMCG's role to the benefit of British industry in the contracts which will follow. The potential returns to the UK are of the order of many £100's of million.

(b) Railway construction. There are a number of major railway construction projects currently planned in Iraq, in particular some 900 kms of new track from Baghdad to Basra (for which the British consultants Henderson Busby are designers). PEP are trying to persuade a British consortium to bid for at least some of these opportunities.

(c) Mosul and Erbil airports. UK consultants were invited

to bid for the design of new airports at Mosul (£55-60m) and Erbil (£33-35m). The consultancy is worth some £5-10m. Two UK firms, Scott, Wilson, Kirkpatrick and Brown, Crozier and Wyatt have been short-listed, (with Weilde Plan (FRG).

(a)

Air Traffic Control System. Marconi Radar (in associa- tion with RAD or Belgrade) have submitted a proposal for a £200 m. turnkey contract (UK content £50 m.) to extend radar control to the whole of the Flight Information Region. The UK CAA are willing to provide training services. The Iraqis' response is awaited.

(e) New Abattoirs. GKN are bidding for this £80 m.

turnkey project (UK content £54 m.). Contract award is expected in October; Australian and Hungarian competition. The final decision on whether or not to

raise it should be taken at short notice.

(f) Khor Al Zubair steelworks. BSC have submitted a bid

for the project engineering and construction management contract, worth £40 m., for the expansion of the steelworks. It is hoped the contract will be awarded by the end of the year. BSC are also submitting a bid, this month, for an operations management consultancy contract, worth £9 m. for the existing steelworks.

The contract is due to be awarded in the next few months.

2

RESTRICTED

{