TNAG-2141-FCO40-3060-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 4

CONFIDENTIAL

HKC 182/2

197

160126

MDHOAN 2657

CONFIDENTIAL

FM FCO

TO IMMEDIATE TOKYO

TELNO 452

OF 17150OZ JULY 90

INFO IMMEDIATE BTC HONG KONG

(53)

TOF COPY Q DIST?

YOUR TELNO OTTER 394: HONG KONG AIRPORT PROJECT

1.

MR MAUDE HAS SPOKEN TO SIR GORDON MANZIE, THE CHAIRMAN OF THE ANGLO/JAPANESE CONSORTIUM ABOUT OUR STRATEGY IN RELATION TO THE CONSORTIUM'S BID FOR THE LANTAU FIXED LINK CONTRACT. ROBIN MCLAREN AND CHRISTIAN ADAMS HAVE ALSO HAD DETAILED DISCUSSIONS WITH MANZIE AND REPRESENTATIVES OF TRAFALGAR HOUSE AND COSTAINS. WE HAVE CONCLUDED THAT THERE WOULD BE ADVANTAGE IN YOUR MAKING A FURTHER APPROACH TO KUMAGAI OF MITSUI, FOLLOWED BY A LOW KEY APPROACH TO MITI AND THE MFA.

2. WE SUGGEST THAT YOU MAKE THE FOLLOWING POINTS IN TALKING TO

KUMAGAI:

KUMAGAI TOLD MR RIDLEY AT SIR J WHITEHEAD'S LUNCH ON 14 MAY THAT MITSUI WERE MAKING PROGRESS IN SECURING JAPANESE

COMPANIES AND HAD NIPPON STEEL ON BOARD (YOUR TELNO OTTER 357). WE CONTINUE TO BE CONCERNED ABOUT THE APPARENT LACK OF PROGRESS IN SECURING FIRM COMMITMENTS FROM THE OTHER KEY JAPANESE

PLAYERS.

WE HOPE THAT MITSUI WILL SOON BE ABLE TO GIVE A FIRM ASSURANCE THAT THEY CAN DELIVER THE OTHER JAPANESE COMPANIES.

-

WE BELIEVE THIS IS A KEY PROJECT FOR THE LONG TERM FUTURE OF HONG KONG AND THAT IT REPRESENTS AN EXCELLENT OPPORTUNITY FOR ANGLO-JAPANESE COOPERATION. HMG IS THEREFORE GIVING THE CONSORTIUM ITS FULL SUPPORT.

- WE BELIEVE THAT IT WOULD BE VERY DESIRABLE TO PUT IN A STRONG PRE-EMPTIVE BID SOON. IN THIS CONTEXT, EARLY AND FIRM COMMITMENTS TO THE CONSORTIUM ARE ESSENTIAL SINCE, EVEN IF THE HONG KONG GOVERNMENT DECIDE TO PROCEED TO A COMPETITION, THE CONSORTIUM WILL HAVE GREATLY STRENGTHENED ITS CLAIM THROUGH THE PROCESS OF A PRE-EMPTIVE BID.

- THE PRIME MINISTER AND OTHER SENIOR MINISTERS HAVE EXPRESSED THEIR STRONG INTEREST IN THE AIRPORT PROJECT.

THE ANGLO-JAPANESE CONSORTIUM HAVE MADE A GOOD START AND THE

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