TNAG-2356-FCO40-3427-Ministerial-visits-from-the-UK-to-Hong-Kong-1991 — Page 67

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October 1991

Sir David Wilson GCMG HONG KONG

CONFIDENTIAL

have had

to deal with

VISIT BY MR GUMMER: UK BUSINESS OPPORTUNITIES

1.

Thank you for your letter of 7 October about Mr Gummer's visit and its useful attachment. It only reached me after your own visit here.

rete expression 12.

of

camen about / there might be a problem of bias in the award of airport

jorible bias as well

We do not know where Mr Gummer picked up the idea that

consultancies or other contracts though I should mislead you if I did not add that his approach is all too familiar to us: the final sentence in paragraph 2 of your letter accurately describes a strongly-held view by Ministers tous held by imiter

3. We gave Mr Gummer a pretty comprehensive brief on the airport. This noted that many consultancy contracts had already been awarded to British companies. It also made clear that the Hong Kong Government has a fair and open tender system and that you are committed to a level playing field. It did say that, if all other matters were equal, it should be possible for the Hong Kong Government to "think British" and pointed out that business and Parliament here would be disappointed if UK companies did not do well. It also mentioned a case where a failed British bid had been extremely uncompetitive.

4.

Our contacts in the DTI tell us that the major British players fully understand the position in Hong Kong: that the British Government is not in the business of trying to twist the Hong Kong Government's arm but that we shall lobby vigorously on behalf of British firms, as we would do anywhere else in the world. As you say, such lobbying is understandable and a fact of life. When Ministers here see Giscard and Shultz lining up for competitors, they feel that they need to be seen to be batting for Britain. I am well aware of the discussions last year about this; but the

ALEAAW/1

CONFIDENTIAL