TNAG-2141-FCO40-3060-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 6

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160126 MDHOAN 2657

COSTAINS MIGHT HAVE TO LOOK FOR OTHER JAPANESE PARTNERS IF MITSUI PROVES TO BE A BROKEN REED.

(II) THE UK MEMBERS OF THE CONSORTIUM HAVE HAD SOME INFORMAL CONTACTS DIRECT WITH THE FOUR BIG JAPANESE COMPANIES (NIPPON STEEL, MHI, IHI, NKK). ACCORDING TO MANZIE, NIPPON STEEL STILL MAINTAIN THAT THEY WANT TO COLLABORATE BUT ARE NOT PREPARED TO TAKE ON TRUST THE DESIGN WORK DONE BY THE UK MEMBERS OF THE CONSORTIUM AND WANT TO DO THEIR OWN DESIGN STUDIES.

(III) EVEN IF THE CONSORTIUM IS NOT IN A POSITION TO SUBMIT A PREEMPTIVE BID, MANZIE HOPES THAT THEY WILL AT LEAST BE ABLE TO RESPOND RAPIDLY WHEN THE HONG KONG GOVERNMENT INVITE BIDS IN SEPTEMBER. ON PRESENT PLANS ALL BIDS HAVE TO BE IN BY FEBRUARY 1991 AND ORDERS WILL BE PLACED IN DECEMBER 1991.

(IV) THE MEMBERS OF THE CONSORTIUM HAVE DENIED THAT THERE IS ANY QUESTION OF MITSUI BEING ASKED TO PUT UP THE LION'S SHARE OF THE FINANCE (PARA 4 OF TUR). MANZIE IS QUITE CATEGORICAL THAT THE AGREEMENT WITH MITSUI SPECIFIES THAT TRAFALGAR

HOUSE/COSTAINS/MITSUI WILL BE EQUAL SHAREHOLDERS AND THAT THE UK AND JAPANESE SIDES OF THE CONSORTIUM WILL EACH PROCURE 50 PERCENT OF THE

FINANCE.

HURD

YYYY

ΜΑΙΝ

27

LIMITED

HKD

FED

COMED

ADDITIONAL

MR ADAMS, PEP, (DTI/VIC ST)

MR ROGERS, PEP, (DTI/VIC ST)

NNNN

DISTRIBUTION

31

PS/MR MAUDE

MR BAYNE

MR MCLAREN

MR GALLAHER, PEP,

(DTI/VIC ST)

MR MEADWAY, OT2, (DTI/VIC ST)

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