TNAG-2047-FCO40-2917-Visits-by-staff-of-the-Department-of-Trade-and-Industry-to-H-1990 — Page 150

CONFIDENTIAL

FM DTI

TO PRIORITY BTC HONG KONG

TELNO OTTER 192

OF 151045Z AUGUST 90

CONFIDENTIAL

pa DTI visits

216/8

B32 (10

066067

MDLIAN 3344

д

30

YOUR OTTER 166

TO HEAP FROM ADAMS, HD OF PEP

MINISTERIAL VISITS: ACCOMPANYING BUSINESSMEN

WE HAVE NOW DISCUSSED THE QUESTION OF ACCOMPANYING BUSINESSMEN WITH MR SAINSBURY. GIVEN THE LUKEWARM RESPONSE OF BRITISH CONTRACTORS (PARA 4 OF OUR OTTER 184) AND THE DISADVANTAGES SET OUT AT PARA 4 OF YOUR TUR THE MINISTER HAS CONCLUDED THAT HE WOULD NEITHER ATTRACT THE RIGHT TEAM NOR HAVE AN EASY RIDE IN HONG KONG IF HE HAD COMPANIES LIKE TRAFALGAR HOUSE ALONGSIDE WIMPEY.

2.

IN THESE CIRCUMSTANCES THE APPROACHES WHICH YOU HAVE MADE TO ENCOURAGE INDIVIDUAL CONSTRUCTION COMPANIES, WHICH DO APPEAR TO BE YIELDING RESULTS, WOULD APPEAR THE BEST WAY FORWARD. WE STILL ANYWAY HAVE TO BALANCE THE ADVANTAGE OF HEDGING OUR BETS ON THE VARIOUS CONTRACTS AGAINST ENCOURAGING TOO MANY BRITIS+ COMPANIES TO BID AND SCRAP WITH EACH OTHER. ON THE FIXED LINK AND RELATED CONTRACTS THE LINE UP OF KIER WITH BOUYGYES AND THE POTENTIAL INVOLVEMENT OF WIMPEY WITH C ITOH WOULD SUGGEST THAT BRITISH CONSTRUCTION COMPANIES WILL NOT BE TOO THIN ON THE GROUND WHEN THE BIDS GO IN.

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