TNAG-1175-FCO40-1477-Proposed-replacement-airport-for-Hong-Kong-at-Deep-Bay-or-Ch-1982 — Page 139

RESTRICTED

DEPARTMENT OF TRADE

DM March Esq

1 VICTORIA STREET

Clift

Mr Mr. Mc Questo y 1773

LONDON SWIH OET

Entér

Senior British Trade Commission

BTC

Hong Kong

Dear Dench, Derek,

HONG KONG: NEW AIRPORT

Mr. Willams

Telephone Direct Line 01-215 5454

Switchboard

01-215 7877

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15 March 1982

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Since returning from Hong Kong last month I have talked to both GEC and Taylor Woodrow about their approach and Chris Benjamin, Dick Clift and I talked to Sir Edward Youde about the airport and our approach to it before GEC and Taylor Woodrow jointly told him (Youde) of their approach.

They

I have told both companies tlie bulk of what I learned in Hong Kong and in particular asked GEC to think about the Jardines and Gammon complication. Taylor Woodrow subsequently got in touch with me to explain their approach. They have been in touch with Costain and, I think, Wimpey, and are wondering whether to approach Balfour Beatty. will certainly make contact with Gammon, but what I would expect them to do is to decide their own approach to the civil engineering aspects of the contract, including the extent to which they will seek to involve Hong Kong firms and they will then approach the Export Group for the Constructional Industry (which is effectively the trade association for the civil engineering contractors on the export side) to seek their agreement to be regarded as the UK bid. GEC at present only have an informal relationship with Taylor Woodrow, and I would expect them to maintain that informality until the situation becomes clearer. GEC are

of course still acting as co-ordinators for the grouping of E & M manufacturers which calls itself the UK Airports Group.

14

They made a good showing before Youde and maintained forcibly that if the Hong Kong Government wanted to let a single contract for the whole of the airport development, GEC and Taylor Woodrow, with their associates, had the expertise and financial capability of taking it on and would be ready to do so. John Lippitt also raised the possibility of a negotiated contract. He said that he felt that there could