TNAG-1054-FCO40-1304-Trade-relations-between-Hong-Kong-and-the-UK-1981 — Page 175

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Mr Sullivan, TRED

(G 1B/1)

NICK 121110

RECEIVED IN REGISTRY NO. 51

4 CERIOSI

DESK OFFICER

INDEX

PA

*1. HOWE

REGISTRY Action Taken

3

OVERSEAS PROJECTS: HONG KONG

1.

No

MS GAY

Your minute of 16 January to Mr Morrice refers.

2. After consultation with the DOT (CRE4) we have drawn up the following list of projects in Hong Kong:

(a) The Mass Transit Railway: in 1979 contracts went to Metro- Cammell (£50 million for rolling stock) GEC Rectifiers (£10 million for power supply equipment), Westinghouse (£1.5 million for signalling equipment), and Cable and Wireless (£1.1 million for radio communications equipment);

(b) Kowloon-Canton Railway: (1979). £44 million oontract for

rolling stock from Metro-Cammell;

(c) Kowloon Motor Bus Co: (1980). £20 million order to British

Leyland for new buses;

(d) China Light and Power's Castle Peak 'A' Power Station:

Contracts in 1979 included an order for two GEC Turbine Generators (£100 million);

(e) Replacement Airport: (1980/81). A bid by BAI/Halcrow for

the Master Consultancy Plan was unsuccessful.

The reason

is believed to be the lack of professionalism in BAI's presentation. The papers on this are with PEP;

(1979).

(f) Hong Kong Electric Co's Lamma Island Power Station:

GEC lost this order (valued at £100 million) to Mitsubishi of Japan, who are thought to have quoted a price barely covering their material and labour costs, and to have offered an exceptionally generous financial package. will have full details;

PEP

(g) Alternative Cross Harbour Links: Mott, Hay and Anderson

(in conjunction with a US firm) won a £2.5 million feasibility study contract in 1979;

3.

PEP have given much attention to projects in Hong Kong and will be aware of the reasons for UK successes and failures there. The two most important factors seem to be financial flexibility and the performance of firms in fulfilling existing contracts.

30 January 1981

P J Williamson

Hong Kong and General Department K242 233 4439

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