CONFIDENTIAL
HKB 18213
141
003142
MDHIAN 2651
TOP COPY
CONFIDENTIAL
FM BTC HONG KONG
TO IMMEDIATE DTI
TELNO OTTER 215
OF 18070OZ NOVEMBER 91
AND TO IMMEDIATE F C O
INFO PRIORITY TOKYO
1
а
Q DIST?
(AMENDED DISTRIBUTION 19/11/91)
FOR ROGERS PEP
139
TOKYO TELEGRAM OTTER 356 TO DTI: HONG KONG AIRPORT PROJECT
1. I AM CONCERNED AT THE INFORMATION IN TOKYO'S TUR THAT MITSUI ARE ''STRONGLY ADVISING TRAFALGAR HOUSE NOT TO BID FOR THE SECOND SMALLER BRIDGE''. THIS WAS NEW TO ME, AND WAS NOT MENTIONED BY SIR GORDON MANZIE WHEN HE WAS IN HONG KONG PRIOR TO GOING TO
TOKYO.
2. IN MY VIEW, THE TRAFALGAR HOUSE COSTAIN-MITSUI GROUP, AJC, SHOULD BE STRONGLY ENCOURAGED TO BID FOR BOTH THE LARGE AND THE SMALL BRIDGE. THIS, FIRST, BECAUSE IT IMPROVES THEIR ODDS OF LANDING A MAJOR CONTRACT. THE ALL JAPANESE GROUP IS STILL CONSIDERED IN MOST CIRCLES WITHIN THE INDUSTRY HERE TO BE THE FAVOURITE FOR THE MAIN BRIDGE. (THE CHAIRMAN OF JOHN LAING INTERNATIONAL, CURRENTLY IN HONG KONG, TOLD ME ONLY TODAY THAT HE WOULD BE ASTONISHED IF THE JAPANESE DID NOT GET THAT CONTRACT:
IS A WIDELY HELD VIEW). SHOULD AJC FAIL TO GET THE CONTRACT FOR THE LARGE BRIDGE THEN THEY HAVE A SECOND CHANCE WITH THE CONTRACT FOR THE SMALL BRIDGE. SECONDLY, WHOEVER WINS THE CONTRACT FOR THE LARGE BRIDGE WILL BE VERY WELL PLACED TO WIN THE CONTACT FOR THE SMALL ONE ALSO. THE TWO BRIDGES VIRTUALLY INTERCONNECT, WITH ONLY A VERY SMALL STRIP OF ROAD BETWEEN THEM, AND WHOEVER WINS THE FIRST CONTRACT WILL HAVE CONSIDERABLE ECONOMY OF SCALE ADVANTAGE
IN TACKLING THE SECOND.
IT
3. MITSUI S REASONING THAT KUMAGAI AND MAEDA SO BADLY NEED THE WORK, (PARA 6 OF TUR) IS NOT AT ALL CONVINCING, KUMAGAI HAVE ALREADY WON TWO OF THE FOUR SIGNIFICANT CONSTRUCTION CONTRACTS SO FAR AWARDED FOR AIRPORT RELATED WORK. THEY ARE A HOT FAVOURITE WITH NISHIMATSU FOR THE WESTERN HARBOUR TUNNEL CROSSING, WHICH IS ALSO PART OF THE AIRPORT RELATED COMPLEX. THESE TWO COMPANIES TOGETHER HAVE DONE ALL THE CIVIL WORKS FOR YEARS FOR CHINA LIGHT AND POWER AND MUST THEREFORE BE VERY STRONGLY FANCIED TO DO THE
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