TNAG-2259-FCO40-3255-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 79

CONFIDENTIAL

FM FCO

TO DESKBY 27003OZ HONG KONG

TELNO 2058

OF 261215Z NOVEMBER 91

CONFIDENTIAL

Po wilf

Submissie

(156

026540

MDHOAN 5467

! Садутра-

thr/Mall, Gary pa- H/ Hall HK13 182/Burstini

27/11

POP Divisie DTI

Mr Stone

PERSONAL FOR GOVERNOR, FROM RICKETTS, HKD

HONG KONG AIRPORT PROJECT

Mr Cox olr

я болью те

1.

I THOUGHT THAT YOU SHOULD BE AWARE THAT WE HAVE BEEN ASKED BY THE SECRETARY OF STATE WHAT VIEW WE TAKE OF ANXIETIES FILTERING THROUGH FROM THE BUSINESS/FINANCIAL COMMUNITY IN HONG KONG ON TWO ASPECTS OF THE PROJECT:

TERMS OF CONTRACT, AND IN PARTICULAR WHETHER THE REQUIREMENT FOR FIXED PRICE CONTRACTS FOR THE LANTAU FIXED CROSSING IS SO ONEROUS THAT CONSORTIA WILL EITHER BE UNWILLING TO BID OR WILL PUT IN VERY HIGH BIDS TO PROTECT THEMSELVES.

-

FINANCING, PARTICULARLY WHETHER UNCERTAINTY IN SOME QUARTERS ABOUT UNDERWRITING LENDING BEYOND 1997 COULD PUT PARTICIPATION BY SOME CONSORTIA AT RISK.

2.

I SHOULD ADD THAT THESE JITTERS ARE NOT COMING FROM TRAFALGAR HOUSE OR THEIR BANKERS SCHRODERS. THEY CAME TOGETHER TO SEE THE DTI RECENTLY AND REMAIN CONFIDENT THAT THEY CAN PUT IN A COMPLIANT AND COMPETITIVE BID.

Lieeeth

3. WE WILL BE PRODUCING A NOTE HERE WITH THE DTI ON THE BASIS OF THE INFORMATION WE HAVE. BUT GIVEN THE SECRETARY OF STATE'S PERSONAL INTEREST, I WANTED YOU TO HAVE THE OPPORTUNITY TO LET US HAVE ANY GENERAL COMMENTS IF YOU WISHED ON THESE ISSUES AS WE COME DOWN TO THE WIRE ON THE LANTAU FIXED CROSSING.

4.

MINISTERIAL CONSIDERATION OF ECGD COVER IS PROCEEDING SEPARATELY WE HOPE TO HAVE A DECISION VERY SOON ON THAT. THE SECRETARY OF STATE'S QUERY RELATED TO THE WIDER PICTURE ALTHOUGH WE WELL RECOGNISE THE CONNEXION HURD

YYYY

BETWEEN THE TWO.

27/~

1

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CONFIDENTIAL