CONFIDENTIAL
17/5
MDLIAN 3-30°
PRESENT DIFFICULTIES, WHILE ANY LONGER TERM LENDING GOING BEYOND 1997 COULD BE REGARDED AS AS SIGNIFICANTLY HIGHER RISK. THE HEADS OF TWO BRITISH MERCHANT BANKS HERE EACH SUGGESTED TO ME THAT FROM THEIR LIMITED KNOWLEDGE OF THE PROPOSALS THEY ALSO APPEAR TO UNDERESTIMATE WHAT THE BANKS WILL SEE AS A CONSIDERABLE RISK INVOLVED IN COMPLETING THE BRIDGE ON TIME, AND IN ACHIEVING A PROFITABLE TRAFFIC THROUGH FLOW THEREAFTER: IN SHORT THEY THOUGHT THAT FINANCING ON THE TERMS PROPOSED COULD BE QUITE HARD TO GET AND QUITE EXPENSIVE.
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3 ANY REACTIONS FROM THE ANGLO JAPANESE CONSTRUCTION CO TO THESE FINANCIAL PROPOSALS WOULD BE HELPFUL.
(II) JOINT JAPANESE CONSTRUCTION CO (AJC)
4. MEANWHILE AJC NOW HAVE A REPRESENTATIVE IN HONG KONG, WATKINSON, WHO ARRIVED ABOUT TWO WEEKS AGO, TO PURSUE THEIR BRIDGE BID. HE WILL COMBINE THIS WITH REPRESENTING COSTAIN'S WIDER INTEREST IN HONG KONG AND IN THE REGION. I AND SMITH- LAITTAN HAVE BRIEFED HIM ON THE AIRPORT AND OTHER PROJECTS. HIS PRESENCE SHOULD HELP AJC CONSIDERABLY, ALTHOUGH I AM STILL UNEASY THAT THIS IS STILL LIKELY TO BE LESS IN TERMS OF LOCAL REPRESENTATION THAN SOME OF THEIR COMPETITORS.
(III) HOPEWELL'S BID
5. IT HAS BEEN ANNOUNCED PUBLICLY THAT GORDON WU'S HOPEWELL GROUP HAS BEEN DISQUALIFIED FROM THE BRIDGES BID, BECAUSE OF THE WITHDRAWAL OF THEIR JAPANESE PARTNER IHI AND THEIR FAILURE TO FIND A REPLACEMENT OF SUFFICIENT STANDING. THE GROUP HAD ALSO INCLUDED SOME BRITISH ELEMENTS E.G. OVE ARUP AND TILEMAN. THIS REDUCES THE BIDDING GROUPS FOR THE MAIN BRIDGE TO FOUR CAJC, THE ALL JAPANESE GROUP, THE KOREAN GROUP AND THE BOUYGUES/DRAGAGES FRENCH-LED BUT MULTI NATIONAL GROUP: BEAZAR-KIER WERE A SIGNIFICANT BRITISH INTEREST IN THIS LAST GROUP, BUT WITH THE SALE LAST WEEK OF BEAZAR ASIA TO BILFINGER AND BERGER OF GERMANY, WE HAVE LOST THIS INTEREST ALSO). GORDON WU HAS EXPRESSED ONLY MILD CONCERN AT HIS DISQUALIFICATION, LARGELY BECAUSE OF HIS BELIEF THAT THE BANGKOK RAILWAY PROJECT (ABOUT WHICH I AM SOMEWHAT LESS SCEPTICAL THAN YOUR TELNO OTTER 259 OF 2 SEPTEMBER: AS SEEN FROM HERE IT LOOKS VERY LIKELY TO GO AHEAD AND REPRESENTS A HUGE OPPORTUNITY FOR METRO CAMMEL/GEC ALSTHOM) WHICH HE THINKS WILL KEEP HIM FULLY OCCUPIED.
(IV) THE BRIDGE DESIGN
SEVERAL SOURCES HAVE PUT TO US THAT THE BRIDGE SPECIFICATIONS
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