TNAG-2258-FCO40-3254-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 73

CONFIDENTIAL

CONFIDENTIAL

FM BTC HONG KONG

TO PRIORITY DTI

TELNO OTTER 97

OF 291123Z APRIL 91

INFO PRIORITY FCO, PEKING, TOKYO, ECGD

59

61

Па

Furters. la lands

(62

151512

MDLIAN 6857

нив 182 13

08 MAY 1991

D.SK OFFICER

INDEX

PA

FOR ADAMS, HEAD OF/PEP

YRTELNO OTTER 114 AND OTTER 121: HONG KONG AIRPORT PROJECT

1. THERE WAS ONLY LIMITED BRITISH COMPETITION FOR THE TWO WEST KOWLOON RECLAMATION CONTRACTS DESCRIBED IN MY TELNO OTTER 83. THE CONTRACT FOR THE SOUTHERN SECTION, WON BY SHUI ON WITH BOSKALIS, WAS UNSUCCESSFUL CONTESTED FROM LOWEST TO HIGHEST BID BY KUMAGAI, LEIGHTON, NISHIMATSU, AND LAST FRANKI KIER (I.E. BEAZAR) OF THE UK IN PARTNERSHIP WITH DREDGING INTERNATIONAL OF BELGIUM. THE WINNING BID WAS HKD 1,097 MILLION. FRANKI KIER'S BID WAS HKD 1,545 MILLION. APPARENTLY THE LETTER TO SHUI ON HAD JUST GONE OUT WHEN THE ISSUING DEPARTMENT WAS TOLD TO PUT IT ON HOLD: SHUI ON APPARENTLY NOW ARE CONTESTING THAT THE CONTRACT IS OPERATIVE.

2. THE CONTRACT COVERING THE NORTHERN PART OF THE RECLAMATION, WON BY KUMAGAI AND HAM WITH A BID OF HKD 1,555 MILLION SAW GAMMON (HALF TRAFALGAR HOUSE AND HALF JARDINES OWNED) IN SECOND PLACE. AOKI WERE THIRD FOLLOWED BY SEVERAL OTHER JAPANESE CONTESTANTS. IN SEVENTH PLACE, OUT OF EIGHTH BIDDERS, WAS MCCONNELL DOWELL WHO MY INFORMANT THOUGHT WERE BRITISH BUT WHO NEITHER HE NOR WE KNOW. (OUR REFERENCE MATERIAL SUGGESTS THEY ARE A NEW ZEALAND COMPANY). IN EIGHTH PLACE WITH A BID OF HKD 1.9 MILLION WAS SHUI ON.

3. ALL OF THE ABOVE HAS BEEN GIVEN TO ME OF COURSE IN STRICT CONFIDENCE.

4.

I AGREE TAT THE NEW TH./COSTAIN/MORRISON-KNUDSON/NISHIMATSU LINE-UP SHOULD INCREASE THE STRENGTH OF THE BRITISH COMPETITION FOR THE AIRPORT PLATFORM. I SAW JOHN FLETCHER WHILE HE WAS HERE, BUT BEFORE HE HAD HAD MOST OF HIS MEETINGS SO I KNOW LITTLE OF TIER OUTCOME, BUT HE SEEMS TO HAVE BEEN SEEING THE RIGHT PEOPLE, INCLUDING SIR DAVID FORD.

5. PARA 7 OF YRTELNO OTTER 121. BALFOUR BEATTY ARE ACTIVELY INTERESTED IN CONTESTING THE AIRPORT PLATFORM CONTRACT. I HAVE

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CONFIDENTIAL