FORMED.
RESTRICTED
177520 MDHIAN 6005
THE AIRPORT PLATFORM CONTRACT
6. MY VIEWS ON A PRE-EMPTIVE BID FOR THIS WERE CONTAINED IN MY TELNO 334. THE VALUE OF THE CONTRACT WILL BE IN THE ORDER OF HKD 10 BILLION BASED ON A 900M RUNWAY SEPARATION. THE HKG HAVE NOW RECEIVED A REPORT FROM GREINER-MANSELL BELIEVED TO RECOMMEND THAT THE RUNWAY SEPARATION SHOULD BE EITHER 1350 OR 1500M, PRIVATE SECTOR CONTACTS BELIEVE THAT ALTHOUGH THE GOVERNMENT HAVE NOT FIRMLY DECIDED THEY ARE WELL ON THE WAY TO ACCEPTING SUCH A RECOMMENDATION. (GOVERNMENTS CONTACT WILL GIVE NO INDICATION OF THIS THINKING)
THE VISIT OF THE CHINESE EXPERTS
7. IN YOUR TUR YOU SEEK MY VIEWS. YOU HAVE HAD REPORTS FROM THE HONG KONG GOVERNMENT I HAVE NOT BEEN BROUGHT IN AND HAVE NOT SEEN THE CHINESE TEAM. IT SEEMS CLEAR THAT THEY ARE NOT GOING TO PRONOUNCE ON THE PROJECT WHILE HERE AND WILL TAKE SOME TIME TO DELIBERATE (OTHER THAN THEIR DISOBLIGING REMARKS ON ARRIVAL AND ONE OR TWO SINCE). ALTHOUGH THE HKG HAS DONE ITS BEST TO GET THEM ABOARD, IT APPEARS THAT THEY HAVE LITTLE ALTERNATIVE BUT TO PRESS ON WITH THE PROJECT IF THEY ARE TO RETAIN A REALISTIC CHANCE OF
KEEPING TO ITS AMBITIOUS TIMETABLE. TO WAIT FOR CHINESE APPROVAL
COULD MEAN WAITING A LONG TIME.
FUNDING OF THE BRIDGE
8. YOU ALSO ASKED FOR COMMENTS ON THIS. AGAIN, I UNDERSTAND YOU (OR FCO) EXCHANGED TELEGRAMS WITH THE HKG WHICH I HAVE NOT SEEN.
MY ONLY COMMENT IS THAT IT HAD BECOME INCREASINGLY CLEAR BEFORE
THE ANNOUNCEMENT THAT THE HKG MIGHT NOT GET ANY SATISFACTORY BIDS ON A BOT BASIS, NOT SO MUCH BECAUSE OF POLITICAL UNCERTAINTIES, ALTHOUGH THE CHINESE ATTITUDE WAS A FACTOR, BUT MORE BECAUSE OF UNCERTAINTIES ABOUT TRAFFIC LEVELS, LAND DEVELOPMENT POSSIBILITIES, THE RATE OF PORT DEVELOPMENT ON LANTAU ISLAND, AND OTHER VARIABLES WHICH PRODUCE SO MANY UNCERTAINTIES THAT ANYONE
BIDDING WOULD HAVE NEEDED TO PUT IN VERY HIGH PRICES TO COVER RISKS. NEVERTHELESS, THERE HAS BEEN A LOT OF LOCAL CRITICISM OF THE CHANGE AND OF ITS TIMING.
OTHER BRITISH COMPANIES
9. WE STILL SEE LITTLE SIGN OF ANY ACTIVE INTEREST BY BRITISH CONTRACTORS IN THE PROJECT AS A WHOLE OTHER THAN THE AJC GROUP AND BEAZER AS PART OF THE BOUYGUES GROUP. AN EXCEPTION IS WIMPEY, WHO HAVE PAID A NUMBER OF VISITS AND WHO TELEPHONE ME FROM LONDON
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