TNAG-2121-FCO40-3027-Hong-Kong-future-defence-and-public-order-matters-1990 — Page 16

CONFIDENTIAL

FM HONG KONG

CONFIDENTIAL

НКС 062 14

RECEIVED IN

YESA

ΟΥ

12 JUN 1990

PY

TO PRIORITY FCO

TELNO 1787

INDE...

OF 070203Z JUNE 90

INFO PRIORITY PEKING, UKREP JLG HONG KONG, BTC HONG KONG

012174 MDLIAN 7053

15

CORRECTED VERSION ADDED INFO ADDRESSEES

RELOCATION OF HMS TAMAR NAVAL BASE TO STONECUTTERS ISLAND

1. PROMPTED BY AN ARTICLE IN THE FINANCIAL TIMES ON 4 JUNE, THE SCMP PUBLISHED YESTERDAY (WEDNESDAY) A FRONT PAGE LEAD ON THE SUBJECT. A COPY FOLLOWS BY FAX.

2. THE ARTICLE WRONGLY STATES THAT HKG HAS SIGNED A HK DOLLAR 330 MILLION CONTRACT WITH PSA INTERNATIONAL FOR THE CONSTRUCTION OF THE NEW NAVAL BASE. THE SLANT OF THE STORY IS THAT A BRITISH GROUP QUOTE WHICH HAS NEVER WON ANY CONTRACTS OUTSIDE THE UK UNQUOTE IS BENEFITING FROM THE CONSTRUCTION OF AN EXPENSIVE FACILITY WHICH WILL ONLY BE USED FOR FOUR YEARS. IT IMPLIES THAT THE WAY THE QUOTE CONTRACT UNQUOTE WAS AWARDED WAS A DEPARTURE FROM THE USUAL

PRACTICE.

3. OUR LINE IS AS FOLLOWS:

(A) WHAT WAS SIGNED WAS NOT A HKG CONSTRUCTION CONTRACT, BUT A CONSULTANCY AGREEMENT UNDER WHICH PSA INTERNATIONAL WILL DESIGN THE FACILITY, AND SUPERVISE AND MANAGE THE VARIOUS CONSTRUCTION CONTRACTS WHICH WILL BE LET IN DUE COURSE. THE COST OF THE PROJECT QUOTED IN THE ARTICLE IS AN ESTIMATE:

(B) PSA INTERNATIONAL WAS SELECTED BY THE DIRECTOR OF ARCHITECTURAL SERVICES FOLLOWING NORMAL PROCEDURES.

WILSON

YYYY

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