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STILL WITH TREASURY OFFICIALS. HE BELIEVES THAT MINISTERS ARE BOUND TO GIVE RAPID APPROVAL, AND MENTIONED THAT TRAFALGAR HOUSE INTEND TO GIVE THAT PROCESS A PUSH VIA A LETTER TO THE DTI. PERHAPS A DECISION IS IMMINENT?
4. SIR G MANZIE TOLD US THAT HE HAD SUGGESTED TO MITSUI THAT THEY, AS A MAJOR TRADING HOUSE, COULD ORGANISE A FINANCIAL GUARANTEE FOR THE PERIOD BEYOND 1997. THEIR RESPONSE WAS TO ASK HMG TO PUT A REQUEST TO MITI TO LINE UP THE JAPAN EXPORT-IMPORT BANK. BUT THE AMBASSADOR AND SIR GORDON AGREED THAT MITSUI SHOULD PAVE THE WAY FOR OUR APPROACH TO MITI BY RAISING THE EXPORT CREDIT ISSUE THEMSELVES AT SENIOR OFFICIAL LEVEL.
5. NEVERTHELESS SIR GORDON ALSO EXPRESSED MISGIVINGS ABOUT MITSUI'S COMMITMENT TO THE AJC BID. THEY HAVE THROUGHOUT BEEN LESS THAN DYNAMIC, MERELY TAGGING ALONG WHILE TRAFALGAR HOUSE MADE THE RUNNING. HE ALSO DOUBTS THEIR CLAIMS TO HAVE SECURED COMMITMENTS FROM THE JAPAN LONG-TERM CREDIT BAN, MITSUI TAIYO KOBE BANK AND MITSUI TOYO TRUST. WITH HINDSIGHT, SIR GORDON THINKS THAT TRAFALGAR HOUSE MAY HAVE CHOSEN THE WRONG PARTNER.
6. MITSUI ARE, SIR GORDON TOLD US, STRONGLY ADVISING TRAFALGAR HOUSE NOT/NOT TO BID FOR THE SECOND (SMALLER) BRIDGE, FOR WHICH THE TENDER DOCUMENTS HAVE JUST ISSUED. THEY ARGUE THAT KUMAGAI-GUMI, WHO HAVE PREQUALIFIED IN CONSORTIUM WITH MAEDA, SO BADLY NEED A SUCCESS THAT THEY WILL BID SO FIERCELY THAT NO-ONE ELSE WILL HAVE A CHANCE. SIR GORDON SUSPECTS THAT THE JAPANESE MAY BE AIMING FOR A DOUBLE JAPANESE VICTORY: THE ALL-JAPANESE CONSORTIUM TO GET THE LARGE BRIDGE, AND THE KUMAGAI-GUMI CONSORTIUM THE SMALL BRIDGE. THE AMBASSADOR'S VIEW IS THAT, WHILE THE JAPANESE GOVERNMENT AT TIMES FEELS A NEED (FOR EXTERNAL POLITICAL REASONS) TO ACT EQUITABLY IN PRACTICE AS WELL AS ON THE SURFACE AS BETWEEN JAPANESE AND FOREIGN BIDDERS, A NATURAL TENDENCY REMAINS TO FAVOUR JAPANESE INTERESTS.
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