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063610
MDLIAN 8391
COULD BE PLANNED WITH THE TIMING OF THESE CONTRACTS IN MIND. INCREASED MINISTERIAL CONTACT WITH THE MAJOR BRITISH COMPANIES IN LONDON MIGHT ALSO ENCOURAGE THEM.
- WE SHOULD PLAY OUR ECGD CARD TO BEST ADVANTAGE. I AM AWARE OF THE DIFFICULTIES THE SIZE OF THESE CONTRACTS MIGHT POSE FOR ECGD IF SEVERAL BRITISH COMPANIES ARE SUCCESSFUL, BUT WE KNOW MORE ABOUT THE PROJECT THAN ANYONE ELSE, AND ECGD MIGHT BE IN A POSITION TO BE READY WITH ITS SUPPORT AHEAD OF THEIR OPPOSITE NUMBERS. IN ANY EVENT THEY MIGHT TRY TO SEE WHETHER WE CAN PROVIDE BETTER OR QUICKER SUPPORT FOR OUR COMPANIES THAN DO THE JAPANESE.
MOREOVER WE NEED TO OFFER (REPEAT OFFER) EARLY ECGD SUPPORT. ALLEN TELLS ME THAT THE FRENCH HAVE ALREADY DONE THIS. JACQUES DESPONTS, DIRECTOR OF EXTERNAL RELATIONS, MINISTRY OF THE ECONOMY, VISITED HIM LAST WEEK, AND SAID BEFORE BEING ASKED THAT THE FRENCH GOVERNMENT WOULD PROVIDE FULL FINANCIAL SUPPORT FOR ALL FRENCH COMPANIES SUCCESSFUL IN THE PROJECT, AND THAT COFACE WOULD MATCH ANY TERMS OFFERED BY ANYONE ELSE. THE FRENCH CONSUL GENERAL RETURNED AGAIN THE NEXT DAY TO UNDERLINE THIS. ALLEN COMMENTED THAT WITHOUT SIMILAR FINANCIAL SUPPORT FROM HMG, BRITISH FIRMS WOULD UNDOUBTEDLY BE DISADVANTAGED: NOR HE ADDED DID HE THINK IT HIS JOB TO GO ROUND BEGGING FOR SUCH BACKING.
8. WE MIGHT ALSO CONSIDER WHETHER TRAFALGAR HOUSE/COSTAIN SHOULD BE ENCOURAGED TO THINK AGAIN ABOUT JOINING WITH THE ALL JAPANESE GROUP IN THE BID FOR THE MAIN BRIDGE. SUCH A MERGED GROUP WOULD HAVE A VERY HIGH CHANCE OF SUCCESS: WHATEVER THE PRICES ON THE BIDS IT WOULD BE EASY FOR THE HKG TO DECLARE THAT SUCH AN ANGLO JAPANESE PARTNERSHIP HAD A MONOPOLY OF RELEVANT EXPERIENCE AND WAS THE ONLY ACCEPTABLE BID. IT SEEMS CLEAR (E.G. FROM THE RECORDS SENT TO ME FROM THE DTI OF SIR DAVID FORD'S RECENT VISIT TO LONDON) THAT HKG WOULD WELCOME SUCH A PARTNERSHIP (PERHAPS AT LEAST IN PART BECAUSE IT COULD AVOID A DIFFICULT DECISION). BUT EXPLORATORY TALKS EARLIER FOUNDERED ON THE SHARE OF THE WORK TO BE GIVEN TO TRAFALGAR HOUSE/COSTAIN. TRAFALGAR HOUSE/COSTAIN WERE LOOKING FOR ABOUT 50 PERCENT. THE JAPANESE WERE LOOKING TO GIVE THEM ABOUT 15 PERCENT. FROM MY LIMITED KNOWLEDGE, IT SEEMS LIKELY THAT THE JAPANESE WOULD ONLY INCREASE THIS SIGNIFICANTLY IF THEY THOUGHT THEY WOULD LOSE ON THE BID, AND THERE IS LITTLE SIGN OF THIS. HOWEVER FOR THE UK TO GET A REASONABLE SHARE OF THE PROJECT AS A WHOLE WE NEED TRAFALGAR HOUSE/COSTAIN TO GET THAT BRIDGE CONTRACT. THEY HAVE A GOOD CHANCE ON THEIR OWN (WITH MITSUI). I
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