TNAG-2141-FCO40-3060-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 128

CONFIDENTIAL

FM DTI

TO DESKBY 24220OZ TOKYO

TELNO OTTER 305

OF 2413OOZ MAY 90

INFO ROUTINE BTC HONG KONG

FROM PEP

HONG KONG AIRPORT PROJECT

CONFIDENTIAL

J DIS

ECE

48

150624

MDHIAN 2005

HKC 182 1/2

*F DOT

31 MAY 1990

1. OUR OTTERS 87 AND 298 SET OUT THE PROBLEMS WHICH WERE ARISING IN RESPECT OF MITSUI'S FAILURE TO SECURE STRONG JAPANESE SUPPORT FOR THE ANGLO-JAPANESE CONSORTIUM IN PURSUIT OF THE LANTAU FIXED LINK. THE POSITION NOW LOOKS MORE DIFFICULT.

2.

AFTER INITIAL DIFFICULTY IN INVOLVING NSC IN DISCUSSIONS BECAUSE OF FRICTION BETWEEN NSC AND MITSUI, ANGLO JAPANESE CONSTRUCTION (AJCL) HAVE BEEN INVOLVED FOR THE PAST FEW WEEKS IN DISCUSSIONS (THE LATEST LAST WEEK IN TOKYO) WITH THE BIG FOUR (MHI, IHI, NKK AND NSC) TO TRY TO PERSUADE THEM TO JOIN WITH AJCL IN MAKING FIRST A PRE-EMPTIVE BID AND THEN, IF THIS WERE NOT ACCEPTABLE TO THE HKG, A NORMAL TENDER FOR THE LANTAU FIXED LINK. IT LOOKED AS IF

IT LOOKED AS IF, WITH THE HELP OF NSC, THIS MIGHT BE ACHIEVED BUT, DESPITE ENCOURAGING NOISES FROM MITSUI ON 22 MAY, AJCL RECEIVED YESTERDAY A VERY DISAPPOINTING RESPONSE FROM THE BIG FOUR. THE GIST OF THEIR MESSAGE WAS :

(I)

WHILST AGREEING THAT A COMBINED BRITISH/JAPANESE BID WAS MORE LIKELY TO CONVINCE THE HKG, THE FOUR COMPANIES WISHED TO PREPARE THEIR OWN BOOT PROPOSAL WHICH MIGHT INVOLVE COLLABORATION WITH AJCL BUT DISCUSSION ON THIS COULD NOT

TAKE PLACE FOR A FEW MONTHS YET:

(II) IN THE MEANTIME THEY WERE PREPARED TO GIVE SUPPORT TO AN

AJCL PRE-EMPTIVE BID ON CERTAIN CONDITIONS SUCH AS

JAPANESE CONSTRUCTING THE SUPERSTRUCTURE INCLUDING CABLES, THE JAPANESE SHARING THE MAJORITY OF THE WORK AND ALL COSTS INCURRED BY THE BIG 4 OUTSIDE JAPAN IN PREPARING THE BID

BEING MET BY AJCL.

ALL OF THESE CONDITIONS ARE UNACCEPTABLE TO AJCL WHO HAVE MADE THIS CLEAR IN THEIR REPLY TO MR ISHIDA, GENERAL MANAGER, STEEL BRIDGE DEPT, MHI, WHO IS ACTING AS A

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