SECRET
071427
MDHIAN 5407
THE
INDICATED THAT HE WAS WELL AWARE OF THE RISK THAT THE KOREAN CONSORTIUM MIGHT PUT IN AN UNREALISTICALLY LOW BID: INDEED HE COMMENTED THAT THEY WERE THE LEAST CREDIBLE OF THE CONSORTIA. MINISTER CONCLUDED BY EMPHASISING THE VITAL IMPORTANCE OF HKG LETTING US HAVE ADVANCE NOTICE OF PROBLEMS ONCE THE TENDERS WERE ΙΝ.
WE MIGHT THEN BE ABLE TO TAKE CORRECTIVE ACTION IN LONDON.
THE GOVERNOR ACKNOWLEDGED THIS POINT.
THE GOVERNOR CONFIRMED AGAIN TO ME PRIVATELY AFTER THE MINISTER'S DEPARTURE THAT IF (AS HE ASSUMED FROM WHAT THE MINISTER HAD SAID) THERE WERE PROBLEMS IN HOLDING THE ANGLO-JAPANESE CONSORTIUM TOGETHER, THE FACT THAT MITSUI DROPPED OUT WOULD NOT MEAN THAT THE CONSORTIUM WOULD AUTOMATICALLY BE DISQUALIFIED. ANY CASE, ONCE THE TENDERS WERE IN, HE EXPECTED THERE WOULD BE SOME FURTHER SHUFFLING BETWEEN THE VARIOUS CONSORTIA: THIS WAS NORMAL IN THE CASE OF MAJOR PROJECTS.
MCLAREN
IN
YYYY
DISTRIBUTION
ΜΑΙΝ
NO DISTRIBUTION
PS/LORD CAITHNESS
SIR J COLES
MR BURNS
MR COX, HKD
NNNN
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