CONFIDENTIAL
175 MDLIAN 350
DTI OF 18 SEPTEMBER). THERE MUST BE A RISK THAT THE BIDS WILL BE VERY HIGH TO COVER ALL POSSIBLE PROJECTIONS OF INFLATION OVER A FIVE YEAR PERIOD, AND ALSO TO COVER THE RISK THAT THE MORE DETAILED GEOLOGICAL SURVEYS STILL TO BE DONE ON THE SITES OF THE BRIDGE TOWERS MIGHT SHOW UP ADDED DIFFICULTIES. THE SUMS INVOLVED ARE SO VERY LARGE, SUFFICIENT TO BANKRUPT ANY OF THE WORLD'S LARGEST COMPANIES IF THEY GET IT WRONG, THAT THEY SEEM BOUND TO PUT IN LARGE ELEMENTS TO COVER THESE RISKS, UNLESS HKG CHANGES ITS MIND AND ALLOWS REVISION IF E.G. INFLATION EXCEEDS A GIVEN LEVEL, OF IF OTHER UNFORSEEABLE DIFFICULTIES ARE ENCOUNTERED. OR THERE IS THE DANGER THAT MOST BIDS WILL REFLECT THESE RISKS BUT ONE OR MORE MAY IGNORE THEM. SINCE BRITISH COMPANIES WOULD BE UNLIKELY TO IGNORE SUCH RISK THIS COULD WORK TO THEIR
DISADVANTAGE.
HEAP
YYYY
ΜΑΙΝ
34
DISTRIBUTION
41
HONG KONG AIRPORT RESTRICTED
LIMITED
HKD
HD/PUSD
HD/FED
HD/NEWS D
HD/PLANNERS
PS
ADDITIONAL
7
SIR P CRADOCK (NO 10)
MS BROOKS LEGAL ADVISERS MR APPLEYARD CABINET OFFICE MR S WIGHTMAN CABINET OFFICE
NNNN
PS/LORD CAITHNESS
PS/PUS
SIR J COLES
MR BAYNE
MR BURNS
HD/JOINT DIRECTORATE
HD/ERD
MR WYE RAD
ADAMS/PEP/DTI VIC ST OT2/2/DTI VIC ST
PAGE 4 CONFIDENTIAL
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