CONFIDENTIAL
151133
MDHIAN 1273
128
CONFIDENTIAL
FM DTI
TO IMMEDIATE TOKYO
TELNO OTTER 253
OF 08170OZ NOVEMBER 91
AND TO IMMEDIATE BTC HONG KONG
TOP COPY
HKB 182/3
Q DIST?
TOKYO FOR HMA AND DIMOND
BTC HONG KONG FOR HEAP, FROM ROGERS PEP
HONG KONG AIRPORT PROJECT
GRATEFUL FOR YOUR ADVICE, AND FOR THAT OF BTC HONG KONG, ON APPROPRIATENESS OF FURTHER APPROACHES TO THE JAPANESE ABOUT THE INTERESTS OF THE ANGLO/JAPANESE CONSORTIUM IN THEIR PURSUIT OF THE LANTAU FIXED CROSSING IN HONG KONG. BIDS FOR THIS CRUCIAL CONTRACT HAVE TO BE IN BY 16 DECEMBER.
2-
MITSUI HAVE TOLD TRAFALGAR HOUSE THAT THERE ARE REAL DIFFICULTIES IN EXTRACTING THE NECESSARY JAPANESE EXPORT CREDIT TO SUPPORT A BID. IN SHORT, THE POSITION APPEARS TO BE THAT JAPANESE EXPORT CREDIT IS NOT AVAILABLE AFTER 1997 IN THE ABSENCE OF A SOVEREIGN GUARANTEE. THERE IS APPARENTLY SOME SUGGESTION ON THE JAPANESE SIDE THAT THEY BELIEVE THE PRC MAY HAVE GIVEN SOME SECRET INDICATIONS TO THE BRITISH SIDE WHICH ENABLE THE UK TO BE MORE CONFIDENT. (COMMENT: IT SHOULD BE NOTED THAT THE UK POSITION ON EXPORT CREDIT FOR THE ANGLO/JAPANESE CONSORTIUM'S BID IS NOT YET CLEAR. THE CONSORTIUM'S APPLICATION IS IN THE USUAL WHITEHALL MACHINERY. MINISTERS ARE OF COURSE AWARE OF THE ISSUE, BUT THE DISCUSSIONS HAVE NOT YET REACHED A FINAL OUTCOME.) MITSUI APPEAR TO HAVE TAKEN IT FOR GRANTED HOWEVER THAT UK COVER WILL BE FORTHCOMING AND THEY HAVE SUGGESTED THAT THE UK SIDE SHOULD APPROACH THEIR JAPANESE COUNTERPARTS TO PRESS THEM TO MAKE EXPORT CREDIT AVAILABLE ON A SIMILAR BASIS.
3. WE HAVE OVER THE MONTHS CONVEYED TO MITI OUR STRONG GENERAL SUPPORT FOR THE ANGLO/JAPANESE CONSORTIUM, BUT I DO NOT BELIEVE THAT THE QUESTION OF EXPORT CREDIT HAS BEEN RAISED AS A SPECIFIC ISSUE. THERE MAY WELL BE A CASE FOR FURTHER CONTACT IN TOKYO AT THIS STAGE TO REITERATE OUR GENERAL SUPPORT FOR THE CONSORTIUM AND PERHAPS EVEN TO PICK UP THE QUESTION OF EXPORT CREDIT, BUT THE LATTER ISSUE WILL NEED
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