TNAG-2259-FCO40-3255-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 146

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5. ON THE TOPIC OF CONTRACT CONDITIONS HE SAID THAT EUROPEAN COMPANIES HAD CONSIDERABLE MISGIVINGS, AND INDEED DIFFICULTY IN BEING ABLE TO ACCEPT THESE. ONE IN PARTICULAR, WHICH HE FELT PLACED NON-JAPANESE COMPANIES AT A DISADVANTAGE WAS A REQUIREMENT THAT NO COMPANY WITHIN ANY OF THE CONSORTIA AWARDED CONTRACTS SHOULD BE SOLD OR DISPOSED OF. THIS WOULD BE A REAL PROBLEM FOR KIER AND HANSON. CROUCH SAID THAT THE ISSUE OF CONTRACT CONDITIONS HAD BEEN DISCUSSED WITHIN THE EUROPEAN CONTRACTOR'S ASSOCIATION, AND THAT FORMAL APPROACHES WERE BEING MADE TO THE HONG KONG AUTHORITIES.

6.

WE ALSO HAD A MEETING ON 28 OCTOBER WITH SIMON MOULES A DIRECTOR OF WARDLEY'S. HE IS PRESENTLY VISITING UK, FRANCE AND GERMANY DISCUSSING WARDLEY'S ROLE AS FINANCIAL ADVISORS TO HKG: HE ALSO MADE SEPARATE CALLS ON OT2 AND ECGD. HE CONFIRMED THAT THEIR REMIT WAS LIMITED TO THE AIRPORT ITSELF, THOUGH THEY NATURALLY HAD A WIDER INTEREST. THEY WERE BIDDING TO ACT AS ADVISERS TO THE PAA WHEN THEIR CURRENT APPOINTMENT EXPIRED.

7.

HE EXPLAINED THAT WARDLEY'S WERE PREPARING A FINANCIAL STRATEGY REPORT BY THE END OF THE YEAR. THE PAA WAS THEN EXPECTING TO PICK IT UP AND REFINE IT. BROADLY SPEAKING

HE SAID THAT:

(A) AIR TRAFFIC CONTROL (AND SIMILAR STRATEGIC MATTERS WILL REMAIN THE RESPONSIBILITY OF THE GOVERNMENT ADMINISTRATION.

THERE HAD BEEN SOME DISCUSSION ABOUT PUTTING ALL OF THIS TO THE PAA, BUT IT WAS NOW MORE OR LESS DECIDED THAT THE GOVERNMENT WOULD RETAIN THIS CONTROL.

(B) THE PAA WOULD BE RESPONSIBLE FOR THE TERMINAL BUILDINGS, BUT CONCESSIONS/FRANCHISES WOULD BE PUT OUT TO PRIVATE

ENTERPRISE BY THE PAA.

(C) THE REMAINDER, WHICH INCLUDES THE OVERALL MAINTENANCE AND MANAGEMENT FUNCTIONS WILL BE THE RESPONSIBILITY OF THE PAA.

8.

HE CONSIDERED THAT WE WERE AT LEAST A COUPLE OF YEARS AWAY FROM DETERMINING WHO WOULD SECURE THE AIRSIDE SERVICES - CARGO HANDLING, MAINTENANCE, CATERING AND FUELLING. HE AGREED THAT THE CURRENT PROVIDERS AT KAI TAK MUST BE IN A STRONG POSITION. NO SURPRISES HERE, BUT AGAIN USEFUL CONFIRMATION OF WHAT WE MIGHT HAVE SUSPECTED.

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