TNAG-2140-FCO40-3059-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 25

CONFIDENTIAL

FM DTI

TO IMMEDIATE BTC HONG KONG

TELNO OTTER 104

OF 11150OZ MAY 90

CONFIDENTIAL

दि.

HKC

18212

RECEIVER

15 MAY 990

33

106573

MDHIAN 0223

FOR HEAP FROM PEP

HONG KONG AIRPORT PROJECT

THANKS FOR YOUR TELNO OTTERS 92 AND 97. WE WERE PLEASED THAT THE UKAG VISIT WENT WELL: AND THE UKAG TEAM GREATLY APPRECIATED YOUR SUPPORT AND INVOLVEMENT. WE WERE ALSO GRATEFUL FOR YOUR COMMENTS ON THE PROPOSED VISIT BY MANZIE TO PEKING: WE HAVE DISCUSSED THIS BRIEFLY WITH MANZIE, AND ARE REFLECTING ON IT FURTHER. YOUR OTTER 99 HAS ALSO JUST ARRIVED.

2. IT IS ENCOURAGING THAT KLEINWORTS HAVE BEEN SELECTED AS FINANCIAL ADVISER FOR THE RAIL LINK AND THE LANTAN FIXED CROSSING, BUT THE POSITION ON THE MASTER PLAN CONSULTANCY HAS BEEN MORE DIFFICULT. WE SHALL PROBABLY SEEK TO ESTABLISH CONTACT WITH MAUNSELL HERE, THOUGH I RECOGNISE THAT IT IS MAUNSELL ASIA WHICH IS ASSOCIATED WITH THE APPOINTMENT.

3.

WE HAVE ALSO BEEN REFLECTING FURTHER ON BECHTEL'S POSITION, AND WOULD BE GRATEFUL FOR YOUR COMMENTS ON THE FOLLOWING THOUGHTS. WE KNOW THAT THE HKG HAD RESERVATIONS ABOUT APPOINTING BECHTEL TO BOTH PROGRAMME MANAGEMENT AND THE MASTER PLAN. IN RESPONSE TO SUGGESTIONS OF A POTENTIAL CONFLICT OF INTEREST, BECHTEL CLEARLY HAD A TACTICAL INTEREST IN EMPHASISING THAT THE PROGRAMME MANAGEMENT ASSIGNMENT WOULD BE HANDLED FROM THE US, WHILE THE MASTER PLAN CONSULTANCY WOULD BE LED BY THE UK. BECHTEL TELL US INCIDENTALLY THAT THE WORKS DEPARTMENT IS INSISTING ON COMPUTER CONTROLLED TECHNOLOGY FOR THE PROGRAMME MANAGEMENT ASSIGNMENT, AND THAT THIS IS ONLY AVAILABLE IN THEIR US OPERATION: WE HAVE NO INDEPENDENT LINE IN ON THIS. BUT NOW THAT BECHTEL HAS BEEN ELIMINATED FROM THE MASTER PLAN CONSULTANCY, WE NEED TO CONSIDER WHETHER WE CAN PROMOTE AN INCREASED UK PARTICIPATION IN THE PROGRAMME MANAGEMENT WORK. BECHTEL THEMSELVES SAY THAT THEIR TERMS OF REFERENCE ARE NOT ENTIRELY CLEAR, THAT THE BOUNDARY BETWEEN THEIR WORK AND THE WORK OF OTHER CONSULTANCIES (PARTICULARLY THE AIRPORT MASTER PLAN) IS OPEN TO DEBATE AND THAT THEY INTEND TO PRESS TO EXPAND THEIR AREA OF

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