TNAG-2356-FCO40-3427-Ministerial-visits-from-the-UK-to-Hong-Kong-1991 — Page 69

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ALE HAW

Sir David Wilson GCMG Governor of Hong Kong

CONFIDENTIAL

AKG anehalf of Boutisch faims no less energetically and effectively than they would in other countries ar as they suspect for thurys,

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VISIT BY MR GUMMER: UK BUSINESS OPPORTUNITIES

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I am willl aware of the last for diversions Earlyear about this. Und the Mention mus constantly have to addremoureu Bis how to assure Ministers Mal; within ther constitutional mirties They will heable to lobby the Bru Amuligh ('men a Chaïf Exies willing the

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Thank you for your letter of 7 October about Mr Gummer'sraithing Hang

visit and its useful attachment. ghin Mached me after your own visit here.

We do not know where Mr Gummer picked up the idea that there was some problem of bias in the award of airport consultancies or other contracts. 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.

that the

Our contacts in the DTI tell us that the major British players fully understand the position in Hong Kong British Government is not in the business of trying to twist the Hong Kong Government's arm but that we shall lobby

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. The

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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. It is also widely assumed that for a project of this scale the Hong Kong authorities will also be factoring into the equation the desirability of some degree of balance in overseas participation. Hong Kong needs powerful friends, and

fort

key partner countries to have a substantial commercial stake in this project can only strengthen their political commitment to The thought'n) Hong Kong's continuing success.

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This hosumptions I wonder how que thyes. It is an arzungstions that lead, British finns who are Intexerted in the our tooth investing in the expensive Andeany process if there

our part platform to wonder whither it is is a deal wish that the British might do well in the fixed link contract- which came firibandital- the HMG would then fore prefer to lochelawner for the hand his contrad. Our recent exchanges withs

CONFIDENTIAL

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