CONFIDENTIAL
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I am well
they need to be seen to be batting for Britain. aware of the discussions last year about this; but the question to which we constantly have to address ourselves is how to assure Ministers that, within the constitutional niceties, they will be able to lobby the HKG on behalf of British firms no less energetically and effectively than they would in other countries, or as they suspect their US, French and Japanese counterparts are doing. Are British Chairmen and Chief Executives getting the level right? The assumption behind all such lobbying is that bids for this vast and complex project will not be awarded solely on the basis of arithmetical comparisons and that the Hong Kong authorities, in assessing the credibility of the companies concerned, will be attentive to the degree of support and commitment which they enjoy in their own countries and from their own Governments.
5. It is also widely assumed that, for a project of this scale, the Hong Kong authorities will be trying to introduce some degree of balance in overseas participation. The thought is that Hong Kong needs powerful friends, and, if key partner countries obtain a substantial commercial stake in this project, this can only strengthen their political commitment to Hong Kong's continuing success. I wonder how you see this? It is an assumption that leads British firms who are interested in the airport platform to wonder whether it is worth investing in the expensive tendering process if there is a real risk that the British might do well in the fixed link contract, which comes first, and that the HKG would therefore prefer to look elsewhere for the second big contract. recent exchanges with Balfour Beatty (copies attached) well illustrate the point. I hope that our response (that the playing field is not tilted against British firms at any point) remains valid; and that the highly international flavour of most consortia makes it impossible and unnecessary to seek a more artificial balance anyway.
6.
Our
We agree that the spreading of untrue rumours can damage UK interests. We cannot censor the tap-room gossip to which visitors may sometimes be exposed, but we shall do our best to ensure that British Ministers visiting Hong Kong are fully aware both of British interests in the airport projects and the need to be sensitive to Hong Kong's autonomous position and open and fair tendering system.
Your ever
Sir J Coles
ALEAAW/2
film Lolas.
CONFIDENTIAL
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