CONFIDENTIAL
FM BTC HONG KONG TO PRIORITY FCO
TELNO 129
OF 190906Z APRIL 91
CONFIDENTIAL
нив 175/
RECEIVED IN REGISTRY
09 MAY 1991
REGISTRY
Pa
SK OFFICER
INDEX
на
Actor
ሪ IS D
A
AND TO PRIORITY DTI, MODUK, ECGD
122457 MDLIAN 4690
©
FOR BURNS AUSS FCO
FOR MEADWAY OT2 DTI
FOR GROSSMAN ARMD 3C MOD
PATROL BOAT ORDER
SUMMARY
1. WE MIGHT CONSIDER WHETHER THERE IS ANYTHING MORE WE CAN DO TO SUPPORT BRITISH COMPANIES COMPETING FOR THIS ORDER. IT WILL HAVE EMPLOYMENT AND OTHER IMPLICATIONS IN THE UK. A MINISTERIAL MESSAGE TO THE GOVERNOR MIGHT BE CONSIDERED.
DETAIL
2. IN VARIOUS TELEGRAMS AND CORRESPONDENCE I HAVE DESCRIBED THIS REQUIREMENT FOR 6 PATROL BOATS TO A VALUE OF ABOUT POUNDS 30 MILLION, AND HAVE SUGGESTED IT BE RAISED BY MINISTERS WITH THE HONG KONG GOVERNMENT. IT WAS BROUGHT UP BY MR SAINSBURY IN SEPTEMBER 1990 AND BY MR LILLEY IN JANUARY, WITH THE GOVERNOR, DURING THEIR VISITS HERE. MY TELEGRAM 190911Z MARCH SUGGESTED THAT THE SECRETARY OF STATE MIGHT ALSO RAISE IT WHEN HERE EARLIER THIS MONTH.
3. AS ALWAYS IN TENDERING SITUATIONS HERE IT IS HARD TO GET ANY FIRM INFORMATION. HOWEVER IT APPEARS THAT OF THE 5 BIDDERS THE CONTEST IS NOW BETWEEN VOSPER THORNYCROFT OF THE UK AND ASI (AUSTRALIAN SHIPBUILDING INDUSTRIES) AND THAT THE HONG KONG MARINE DEPARTMENT'S TECHNICAL EVALUATION HAS GIVEN THE EDGE TO VOSPER THORNYCROFT. I HAVE NO INFORMATION ON COMPARATIVE PRICES ALTHOUGH VOSPER THORNYCROFT HAVE PUT TOGETHER AN ATTRACTIVE FINANCIAL PACKAGE WITH HELP FROM SCHRODERS, AND SAY THAT SO KEEN ARE THEY TO GET THE WORK THAT THEIR PRICE WILL CERTAINLY BRING THEM NO PROFIT AND POSSIBLY A LOSS. THE VALIDITY OF TENDERS HAS BEEN EXTENDED TO 31 MAY SO A DECISION WILL BE REQUIRED BY THEN. I AM TOLD IN CONFIDENCE ON THE HONG KONG GOVERNMENT SIDE THAT THE TENDERED PRICE FOR THE VESSELS IS MORE THAN TWICE THAT PUT IN THE ESTIMATES (LARGELY BECAUSE THE ESTIMATES USED OUT OF DATE FIGURES
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