RESTRICTED
FM BTC HONG KONG
TO IMMEDIATE F CO
TELNO 302
OF 25100OZ OCTOBER 91
INFO IMMEDIATE DTI, ECGD
INFO ROUTINE TOKYO
RESTRICTED
Mats 182/3
OT 100:
TOP COPY Q DIST?
113)
101237
MDHIAN 9139
DTI FOR ADAMS, HEAD OF PEP
YOUR TELNO 215: HONG KONG AIRPORT PROJECT:
1.
SCHRODERS
SCHRODERS RUN A LARGE OPERATION IN HONG KONG WITH MANY FACETS TO THEIR INTERESTS. AMONG THE MORE PROMINENT AT PRESENT ARE THEIR ROLE AS ADVISERS TO THE ANGLO JAPANESE CONSTRUCTION COMPANY FOR THE AIRPORT MAIN BRIDGE CONTRACT, WHICH IS FIRM, AND A LESS FIRM ROLE ADVISING THE COSTAIN/TRAFALGAR HOUSE/MORRISON- KNUDSON/NISHIMATSU GROUP FOR THE SITE PREPARATION CONTRACT WHICH SO FAR IS INVOLVING THE LONDON OFFICE MORE THAN SCHRODERS HERE, AND IN ADDITION THEY ARE ADVISERS TO GEC ALSTHOM FOR BLACK POINT AND OTHER POWER STATION REQUIREMENTS IN HONG KONG. THEY HAD HOPED TO BECOME THE HKG'S FINANCIAL ADVISERS FOR THE WESTERN HARBOUR CROSSING BUT THIS WENT TO BARCLAYS SEVERAL WEEKS AGO. THEY HAVE BEEN INVITED TO SUBMIT PROPOSALS TO THE FINANCIAL ADVISERS TO THE PROVISIONAL AIRPORT AUTHORITY (AS HAVE MOST BRITISH MERCHANT BANKS REPRESENTED HERE) BUT ARE UNLIKELY TO RESPOND BECAUSE OF A LIKELY CONFLICT OF INTERESTS WITH THEIR PROBABLE ROLE AS FINANCIAL ADVISERS TO THE COSTAIN/TRAFALGAR HOUSE MORRISON KNUDSON, NISHIMATSU GROUPS.
2.
NOW THAT THE BID FOR THE MAIN BRIDGE ALSO REQUIRES FINANCING PROPOSALS (PARA 2 OF MY TELNO OTTER 180), THE PREPARATION OF THESE, WITH NOT MUCH TIME LEFT, SHOULD BE A MAJOR TASK FOR SCHRODERS. A DISTURBING COMMENT WAS MADE TO ME TODAY (25 OCTOBER) (IN CONFIDENCE) BY THE SECRETARY OF WORKS (BLAKE) WHO SAID THAT THEY WERE SERIOUSLY CONCERNED AT THE TOP OF THE HONG KONG GOVERNMENT (AND HE ADDED THE SECRETARY FOR THE TREASURY MIGHT RAISE IT WITH ME) THAT THERE HAD BEEN NO APPROACH FROM THE BRITISH SIDE ABOUT THE FINANCIAL PACKAGE FOR THE BRIDGE. BLAKE SAID THAT THE JAPANESE AND THE FRENCH GROUPS HAD EACH HAD DELEGATIONS IN HONG KONG FOR DISCUSSIONS ON THE FINANCING REQUIREMENTS AND THE SILENCE FROM THE BRITISH TEAM MADE THEM WONDER IF WE WERE STILL SERIOUSLY INTERESTED. I HAVE RELAYED THIS
1
PAGE
RESTRICTED
No comments yet.
Private notes are available after approval.