TNAG-2258-FCO40-3254-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 93

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021756 MDHI 95 ·

UK SINCE THE SECOND HALF OF JANUARY.

THERE HAD FRANKLY BEEN LITTLE FOR HIM TO DO. BUT HE ALSO ACKNOWLEDGED THAT THEY MIGHT BE LOSING OUT IN THE PR STAKES - (AS PER YOUR TELNO 91). MANZIE WILL DISCUSS THIS WITH AJC, BUT IT IS LIKELY THAT THERE WILL BE A FURTHER VISIT SHORTLY: THEY WILL NO DOUBT BE IN

TOUCH WITH YOU ABOUT THIS.

4.

WE DISCUSSED THE WORK SHARE BASIS ON WHICH DISCUSSIONS WITH THE JAPANESE HAVE PROCEEDED THUS FAR. WE HAVE BEEN KEEN TO INSIST ON A 50:50 SPLIT OF WORK, AND THIS IS THE BASIS ON WHICH DISCUSSIONS HAVE PROCEEDED BOTH WITHIN THE AJC AND WITH OTHER POTENTIAL JAPANESE COLLABORATORS. WE CONCEDED THAT WE MIGHT HAVE TO COMPROMISE ON THIS: FOR EXAMPLE ON A 60:40 SPLIT. THE EARLIER 50:50 APPROACH HAD BEEN ON THE BASIS OF THE EQUITY FOR WHICH THE PARTIES WOULD BE RESPONSIBLE AND THIS HAD OF COURSE BEEN OVERTAKEN BY EVENTS. THIS MAY PROVE AN IMPORTANT AREA. WE ARE OF COURSE KEEN TO WIN THE MAXIMUM SHARE POSSIBLE, BUT IT IS CLEARLY VITAL TO WIN THE PROJECT IN THE FIRST PLACE. WE WILL NEED TO KEEP THIS UNDER REVIEW AS THINGS DEVELOP.

5. WE FINALLY REVIEWED THE WIDER SCENE. WE ALLUDED TO THE FOREIGN SECRETARY'S IMMINENT VISIT (NOT THEN ANNOUNCED). IN THIS CONTEXT WE ALSO UNDERLINED THAT WE THOUGHT THE AJC SHOULD BEAR IN MIND A POSSIBLE PRC PARTICIPATION IN THE WORK.

WE UNDERSTAND INCIDENTALLY THAT THE GOVERNOR HAS SPOKEN TO MANZIE IN RECENT DAYS, AND THAT HE HAS CONVEYED THE IMPRESSION THAT THE CALLING FOR BIDS FOR THE BRIDGE MAY WELL BE DELAYED. WE VERY MUCH HOPE THAT THE FOREIGN SECRETARY'S VISIT WILL CLARIFY THE POSITION VIS A VIS THE PRC'S APPROACH TO PADS.

WIMPEY RECENTLY

6. WE HAVE BEEN IN TOUCH WITH A NUMBER OF OTHER COMPANIES RECENTLY ABOUT RELATED PROJECTS IN HONG KONG. APPROACHED COSTAINS TO EXPLORE THE POSSIBILITY OF COLLABORATION ON THE AIRPORT PLATFORM, BUT COSTAINS WAS NOT ENTHUSIASTIC. SUBSEQUENTLY WIMPEY REPORTS GOOD PROGRESS IN DISCUSSION WITH NISHIMATSU AND, AS YOU NOTE IN YOUR TELNO 91, THEY EXPECT TO PUT FORWARD A JOINT VENTURE BID FOR THE PLATFORM. BALFOUR BEATTY HAVE ALSO SPOKEN TO US ABOUT THEIR ACTIVE INTEREST IN THE PLATFORM, BUT WE TOO HAVE HEARD LITTLE FROM THEM RECENTLY. WE SHALL MAKE ENQUIRIES AGAIN. WE HAVE CERTAINLY SOUGHT TO ENCOURAGE UK FIRMS TO BID IN OUR DISCUSSIONS WITH THEM OVER RECENT MONTHS. MEANWHILE MOWLEMS HAVE CONFIRMED THEIR INTENTION TO PURSUE THE WESTERN HARBOUR CROSSING JOINTLY WITH BROWN AND ROOT.

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