CONFIDENTIAL
HKB
18215
·ECEIVE
51
020616
MDLIAN 8567
CONFIDENTIAL
FM BTC HONG KONG
TO ROUTINE DTI
TELNO OTTER 65
OF 250916Z MARCH 91
INFO ROUTINE F CO
TOKYO, PEKING
PEP"
FOR ADAMS, HEAD OF PEP
MR BURNS
CC MR COX
MR STONE
Mr Fuqiy /20/3
YOUR TELNO OTTER 79: HONG KONG AIRPORT PROJECT
1.
SINCE THE ANGLO-JAPANESE CONSTRUCTION (AJC) RESPONSE TO HOPEWELL'S OVERTURES IS SOMEWHAT NEGATIVE I DO NOT PROPOSE TO SAY ANYTHING MORE TO HOPEWELL UNLESS PRESSED BY THEM. IN THAT CASE I WOULD SAY THAT WE HAD PASSED ON THEIR APPROACH TO AJC BUT THAT ANY FOLLOW-UP WOULD BEST BE DONE BETWEEN COMPANIES.
2.
YOUR PARA 4. IT IS AT THE HIGHER LEVELS (E.G. BOTH THE GOVERNOR AND THE CHIEF SECRETARY) THAT WE HAVE BEEN TOLD THAT REGROUPING OF COMPANIES AFTER PRE-QUALIFICATION WOULD OR COULD BE ACCEPTABLE. THOSE MORE DIRECTLY RESPONSIBLE FOR HANDLING THE BIDDING HAVE CONSISTENTLY SAID THAT THE RULES WILL NOT PERMIT THIS. I AM DOUBTFUL MYSELF WHETHER REGROUPING OR THE ADDITION OF NEW PARTIES WILL BE READILY ALLOWED BUT I AM SURE IT WILL DEPEND UPON THE CIRCUMSTANCES AND THE NATURE OF THE PROPOSED CHANGES.
3.
MEANWHILE GROUPS ARE BEGINNING TO FORM FOR CONSTRUCTION OF THE HARBOUR TUNNELS REQUIRED FOR THE PROJECT. SIR Y K PAO'S WHARF GROUP UNDER THE UMBRELLA OF THE CROSS HARBOUR TUNNEL COMPANY, WHICH THEY6 OWN, HAVE APPOINTED A PROJECT DIRECTOR AND HAVE A TEAM OF PEOPLE WORKING ON THE WESTERN HARBOUR CROSSING. THEY ARE PUTTING TOGETHER AN INTERNATIONAL GROUP AND SAY THAT INTER ALIA THEY HAVE BEEN TALKING TO COSTAIN. I UNDERSTAND ALSO THAT KUMAGAI AND NISHIMATSU HAVE COMBINED TO FORM A RIVAL GROUP: ONE THAT MANY IN THE INDUSTRY HERE BELIEVE WILL BE ALMOST IMPOSSIBLE TO BEAT, GIVEN THEIR INDIVIDUAL STRENGTH HERE AND THEIR EXPERIENCE AND SUCCESS IN PREVIOUS TUNNEL PROJECTS IN HONG KONG. ANY BRITISH CONSTRUCTION COMPANIES WANTING TO GET INVOLVED WILL THEREFORE HAVE TO MORE QUICKLY.
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