TNAG-2047-FCO40-2917-Visits-by-staff-of-the-Department-of-Trade-and-Industry-to-H-1990 — Page 157

CONFIDENTIAL

FM BTC HONG KONG

TO IMMEDIATE DTI

TELNO OTTER 166

OF 020945Z AUGUST 90

CONFIDENTIAL

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Kenny vpn Be

VILER" A Luften**

023137

26/24 MDADAN 7198

100

PERSONAL FOR LOVE, OT2/2 AND ADAMS, HEAD OF PEP

MINISTERIAL VISITS

1. IN OUR TELECON OF 30 JULY YOU SAID YOU THOUGHT IT POSSIBLE THAT THE NEW DTI MINISTER OF STATE (I ASSUME MR SAINSBURY, ALTHOUGH WE HAVE NOT YET SEEM ANY ALLOCATION OF PORTFOLIOS AMONG THE NEW DTI MINISTERS) MIGHT STILL ADHERE TO THE PLANS MADE PREVIOUSLY BY LORD TREFGARNE FOR A VISIT FROM 23 TO 26 SEPTEMBER. I SUGGEST THAT CONSIDERATION CAN BE GIVEN TO THE POSSIBILITY OF HIS BEING

ACCOMPANIED BY A GROUP OF TOP REPRESENTATIVES FROM THE CONSTRUCTION

INDUSTRY.

2. YOU WILL BE AWARE OF MY OFTEN EXPRESSED VIEW THAT THE MAJOR BRITISH CONSTRUCTION COMPANIES ARE MISSING OUT ON THE ENORMOUS OPPORTUNITIES THAT ARE VERY RAPIDLY UNFOLDING IN HONG KONG. YOU ARE ALSO AWARE OF THE DETAILS. THE PADS PROJECT TO A VALUE OF PDS STG 10 BILLION. THE TOTAL RECONSTRUCTION OF THE HONG KONG SEWERAGE SYSTEM TO A VALUE OF MORE THAN PDS STG 1 BILLION. A NEW POWER STATION FOR CHINA LIGHT AND POWER TO THE VALUE OF SOME BILLIONS OF POUNDS. THE LIST IS ENDLESS. VERY FEW OF THE BRITISH CONSTRUCTION COMPANIES ARE ACTIVE HERE. THEY TEND TO SAY THEY CANNOT COMPETE WITH THE LOCALS. AND YET THE LARGEST CONSTRUCTION COMPANY IN HONG

KONG IS DRAGAGES I.E. BOUYGUES OF FRANCE.

·

3 I SUGGEST THAT A SMALL NUMBER OF VERY SENIOR REPRESENTATIVES

(I.E. CHAIRMEN OR MANAGING DIRECTORS) OF BRITAIN'S LARGEST INTERNATIONALLY ORIENTATED CONSTRUCTION COMPANIES E.G. TARMAC, WIMPEY, COSTAIN, TAYLOR WOODROW, MOWLEM, BOVIS, HIGGS AND HILL, BE INVITED TO ACCOMPANY THE MINISTER TO LOOK AT THE CONSTRUCTION SCENE INCLUDING THE PADS OPPORTUNITIES. TRAFALGAR HOUSE AND COSTAIN WOULD ALSO NO DOUBT EXPECT TO BE INVITED THOUGH THEY OF COURSE ARE WELL ABREAST OF AIRPORT DEVELOPMENTS. SINCE THE OBJECTIVE WOULD BE TO PERSUADE THESE COMPANIES TO PUT MORE RESOURCES AND EFFORT INTO AN ATTACK ON THE HONG KONG MARKET, THIS WOULD ONLY WORTHWHILE IF WE COULD GET THE VERY TOP PEOPLE.

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CONFIDENTIAL