TNAG-2258-FCO40-3254-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 222

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REF MY TELNO OTTER 7 OF 7 JAN: HONG KONG AIRPORT PROJECT

1. MY RECENT DISCUSSIONS WITH TAKAYAMA OF MITSUI AND RICHARD HAND OF TRAFALGAR HOUSE HAVE BROUGHT NOTHING NEW TO LIGHT ON THE AJC'S STRATEGY FOR THE AIRPORT PROJECT. TRAFALGAR HOUSE SEEM

TO BE LEAVING IT UP TO MITSUI TO FIND ADDITIONAL JAPANESE PARTNERS WHILE MITSUI THEMSELVES SAY THAT THEY ARE WAITING UNTIL THE PRE-QUALIFICATIONS ARE ANNOUNCED BEFORE THEY UNDERTAKE ANY FURTHER LOBBYING. TAKAYAMA COMMENTED THAT YOKOGAWA CONSTRUCTION, WHOM HE HAD HOPED TO BRING INTO THE AJC GROUP, HAS APPARENTLY JOINED FORCES WITH THE INTERNATIONAL CONSORTIUM LED BY BOUYGUES/ DRAGAGES. MITSUI HAVE NOT YET GIVEN UP THE IDEA OF REALIGNING

THE AJC GROUP WITH ONE OF THE STRONGER-LOOKING PARTNERSHIPS AFTER PRE-QUALIFICATION, BUT TAKAYAMA ADMITTED THAT THIS WOULD BE A COMPLICATED EXERCISE, AND THAT THE HONG KONG GOVERNMENT WOULD PROBABLY NOT WELCOME DRASTIC CHANGES IN THE CONTRACTOR GROUPS AFTER THE PRE-QUALIFICATION STAGE. IN ANY CASE, THE AJC GROUP SEEM TO HAVE LITTLE TO OFFER THE OTHER GROUPS ON THE CONSTRUCTION SIDE THAT WOULD NOT BE IN DIRECT COMPETITION WITH WHAT THEIR MEMBERS HAVE ALREADY.

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