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MDHIAN 6421
RESTRICTED
FM BTC HONG KONG
TO IMMEDIATE DTI
TELNO OTTER 237
OF 1611582 DECEMBER 91
AND TO IMMEDIATE FCO
INFO IMMEDIATE ECGD
INFO PRIORITY TOKYO, PEKING
FOR PEP
1173
OP COPY Q DIST?
MY TELNO OTTER 232: HONG KONG AIRPORT PROJECT: LANTAU FIXED CROSSING CONTRACT
1. THE BIDS ON THIS CLOSE TODAY 16 DECEMBER. A PROMINENT ARTICLE IN THE MAIN NEWS SECTION IN TODAY'S SOUTH CHINA MORNING POST IS HEADED JAPANESE 'TO WIN CONTEST FOR THE CROSSING' AND GOES ON TO SAY THAT THE ALL-JAPANESE BID IS LIKELY TO BE DOLLARS 2 BILLION CHEAPER THAN ITS COMPETITORS 'THANKS TO GENEROUS FINANCIAL BACKING FROM THE JAPANESE GOVERNMENT'. THE ARTICLE CONTINUES THAT MITSAMATSU AND THEIR JAPANESE COLLEAGUES HAVE SECURED EXPORT CREDIT TO A VALUE OF UP TO DOLLARS3 BILLION. THE ARTICLE QUOTES SOURCES CLOSE TO THE BID AS SAYING THAT THEY DOUBT THAT EITHER THE ANGLO-JAPANESE CONSORTIUM OF THE INTERNATIONAL GROUP LED BY BOUYGUES OF FRANCE WILL BE ABLE TO MATCH THE JAPANESE EXPORT CREDIT SUPPORT, WHILE THE SUPPORT BEING GIVEN BY THE SOUTH KOREAN GOVERNMENT TO THE HYUNDAI LED GROUP IS UNKNOWN. THE HEAD OF DREGAGES, THE LOCAL ARM OF BOUYGUES, IS QUOTED AS SAYING HE BELIEVES THEIR BID WILL BE COMPETITIVE BUT THAT BECAUSE OF THE SHEER SIZE OF THE PROJECT AND THE LONG EVALUATION PERIOD EVERYBODY WILL BE IN WITH A CHANCE.
2. THE TRAFALGAR HOUSE GROUP HAVE CONFIRMED THAT THEY HAVE SUBMITTED THEIR BID, BUT LOCAL REPRESENTATIVES SEEM TO HAVE LITTLE KNOWLEDGE OF ITS CONTENTS.
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