CONFIDENTIAL
075154
MDLIAN 0832
ROUTE OF THE BRIDGE AROUND HONG KONG TERRITORIAL WATERS SO THAT IT WOULD BE WHOLLY IN CHINESE TERRITORY. IT WOULD HAVE LONG CAUSEWAYS, WHICH WOULD BE SIMPLE GIVEN THE SHALLOW WATER, AND TWO SHORT TUNNELS UNDER THE DEEPEST CHANNELS THEREBY ALLOWING PASSAGE FOR LARGE SHIPS. THE TOTAL LENGTH OF THE CAUSEWAY AND TUNNELS WOULD BE 32 KMS.
11.
THERE ARE FEW OPPORTUNITIES FOR BRITISH COMPANIES IN THE GUANGZHOU-HONG KONG HIGHWAY. IF THE BRIDGE PROPOSAL MATERIALISES THEN THERE MAY BE MORE, BUT THAT WILL COME LATER.
(D)
POWER STATION AT PAGBILAO GRANDE ISLAND, PHILIPPINES.
12. GORDON WU SAID THEY HAVE REACHED FULL AGREEMENT WITH THE PHILIPPINE GOVERNMENT TO PROCEED WITH THIS PROJECT WHICH WOULD REQUIRE 2 X 350 MW UNITS. IT HAD IFC AND ADP BACKING SO HE CLAIMED FINANCE WAS ASSURED. IT DID NOT DEPEND UPON ANY ASSESSMENT OF THE PHILIPPINE RISK. HE THOUGHT GEC ALSTHOM COULD BE COMPETITIVE AND WOULD STAND A GOOD CHANCE. HE WANTS TO START DISCUSSION WITH LIKELY SUPPLIERS EARLY IN THE NEW YEAR.
CONCLUSION
13. GORDON WU HAS MANY CRITICS AND MANY WHO ARE SCEPTICAL OF HIS PROJECTS. AS PAST REPORTING WILL INDICATE, I AM NOT ONE OF THEM. HE WAS LAST WEEK ELECTED HONG KONG BUSINESSMAN OF THE YEAR. HE TELLS ME HOPEWELL HAVE HKD 5 BILLION IN THE BANK (HKD 1.8 BILLION OF WHICH HE SAYS IS IN BANGKOK BANKS EARNING 13 PER CENT INTEREST). EACH OF THESE PROJECTS HE SAYS WILL HAVE SUBSTANTIAL SELF-FINANCING, WITH SHORT PAY BACK PERIODS AND SUBSTANTIAL PROFIT EXPECTATIONS. HE WILL BE PUTTING A GREAT DEAL OF HIS OWN MONEY INTO THEM, AND WILL BE STRONGLY SUPPORTED, HE CLAIMS, BY THE BANKS. IT IS CERTAINLY TRUE THAT THE HONG KONG AND SHANGHAI BANK HAVE SUPPORTED EARLIER PROJECTS. GEC ALSTHOM ARE VERY WELL- PLACED INDEED FOR MAJOR BUSINESS IN SHAJIAO C AND THE BANGKOK RAILWAY AND PROBABLY ALSO THE PHILIPPINE POWER STATION PROJECT. THEY SHOULD DEVOTE, I BELIEVE, SOME SERIOUS BOARD LEVEL ATTENTION TO THESE PROJECTS. THEY HAVE OPPORTUNITIES HERE TO TAKE ENOUGH WORK TO KEEP THEM BUSY FOR A DECADE, BEARING IN MIND ALSO THEIR PROSPECTS AT BLACK POINT WHICH ARE AS GOOD AS THOSE DESCRIBED
ABOVE.
HEAP
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CONFIDENTIAL
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