TNAG-2259-FCO40-3255-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 103

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Mr Miles, Joint Directorate

AMEC

1.

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"#ffures 21 / 8182/3

APS/Lord Caithness

7 November 1991

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Sir George Jefferson and Mr John Bateson, Chief Executive of AMEC called to see Lord Caithness this morning. The Minister had met Sir G Jefferson during his recent trip to Australia when he visited a joint venture project to build an oil rig.

2.

Mr Bateson said that the recession in Britain had forced AMEC to look further afield for new business and they were increasingly tempted by the prospects of South East Asia and Australia. Their turnover in Australia last year was some £150 million and they were looking to invest more in the region. They had bought a small (electrical?) business in Hong Kong in order to get a foothold there for when the airport project comes on stream. AMEC have been approached by Hughes Aviation of America to join them in their bid to install the radar and direction finding equipment at the new airport. Apparently Hughes have been told by the Chinese that the new airport would have to have the Hughes system because that is what is used in China and China has the influence to say what sort of equipment should be installed. On a similar tack Hyundai (AMEC's partners in the bid for the Lantau crossing) have been told by the Chinese that unless they have a Chinese company as a member of their consortium they will not get that contract. Lord Caithness told Mr Bateson that the Chinese did not have a veto on such matters and although the advantages of having a Chinese member of the consortium should not be overlooked, it was the Hong Kong Government who would decide who gets the contact.

3.

Mr Bateson mentioned other projects for which AMEC were bidding. These included a £600 million pound construction scheme in Singapore for some Hong Kong businessmen wishing to invest outside their home territory; a tunnelling contract in Taiwan, a £60 million contract to supply and construct steel

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