TNAG-1662-FCO40-2310-Hong-Kong-Western-Harbour-Lantau-Strategic-Development-proje-1987 — Page 60

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PETER HUTCHINSON. COSTAIN HAVE NOT BEEN INACTIVE. THEY HAVE

APPROACHED BALFOUR BEATTY, WIMPEY, LAING AND TAYLOR WOODROW WITH A VIEW TO FORMING A PROJECT MANAGEMENT CONSORTIUM WHICH

PROBABLY WOULD ALSO INJECT SOME EQUITY INTO THE PROJECT ALONG

WITH HOPEWELL, THE PRC GOVERNMENT AND PERHAPS THE HONG KONG

GOVERNMENT. COSTAINS ARE WILLING TO TALK TO OTHER CONTRACTORS

AND EQUIPMENT SUPPLIERS BUT IN ADVANCE OF A DECISION BY THE

HONG KONG GOVERNMENT TO ALLOW THE PROJECT TO PROCEED IN SOME

FORM DO NOT WISH TO BEGIN DETAILED TALKS WITH OTHER SUPPLIERS.

4 WE HAVE BEEN APPROACHED BY TRAFALGAR HOUSE WHO HAVE AN

INTEREST IN SUPPLYING THE BRIDGING AND HAVE ASKED FOR OPF SUPPORT.

I HAVE TOLD THEM THAT WE SHALL WANT A UK PLC APPROACH AND ARE

NOT WILLING TO EXTEND OPF ON A FRAGMENTED BASIS. RELATIONS

BETWEEN COSTAINS AND TRAFALGAR HOUSE ON THE OVERSEAS FRONT

ARE NOT PARTICULARLY GOOD AND PROBABLY NOT HELPED BY APPROACHES

WHICH FLETCHER AND IAN MACGREGOR MAY HAVE MADE TO GORDON WU.

I AM RATHER CONCERNED AT THE IMPLICATION IN YOUR TELEGRAM THAT

WU MIGHT WISH TO HEAR FROM BRITISH CONTRACTORS AND

SUPPLIERS RATHER THAN DIRECTING ENQUIRIES THROUGH COSTAIN AND

THEIR PARTNERS HERE. WU, OF COURSE, WANTS THE BEST DEAL AND

IF BRITISH INDUSTRY IS NOT COMPETITIVE WILL NO DOUBT FOLLOW

THE PATTERN OF THE SHAIJAO PROJECT USING HOPEWELL/COSTAIN PROJECT

MANAGEMENT AND JAPANESE EQUIPMENT. COSTAIN ARE KEEN THAT THE

BRITISH GOVERNMENT SHOULD GIVE WU AN EARLY ASSURANCE THAT A

CREDIBLE UK CONSORTIUM IS FORMING AND ENJOYS BRITISH GOVERNMENT

SUPPORT. I AGREE THERE COULD BE ADVANTAGE IN OUR GIVING WU

SUCH AN ASSURANCE PERHAPS IN THE FORM OF A LETTER FROM YOU

TO HIM. IT WOULD NECESSARILY HAVE TO BE COUCHED IN FAIRLY

GENERAL TERMS AND COULD NOT PRE-JUDGE THE POSSIBILITY OF FURTHER OPF SUPPORT OR, AND THIS ULTIMATELY WILL BE AN IMPORTANT ASPECT, ECGD'S ATTITUDE TO A LIMITED RECOURSE PROJECT. IF IT IS TO

BE OF ANY VALUE, WU WOULD WANT TO SHOW SUCH A LETTER TO THE HONG KONG GOVERNMENT. HOWEVER, WE WOULD WISH TO AVOID A REPEAT OF PUBLICITY FOLLOWING THE OFFER OF OPF TO OVE ARUP WHICH FORCED THE HONG KONG GOVERNMENT TO TAKE UP A DEFENSIVE POSTURE. I

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