TNAG-2408-FCO40-3502-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1992 — Page 108

111315Z

REFERRED TO HD/HKD FOR DIST. ADVICE - 11132OZ MAR AH

LNMDAN 4511

HMLNAN 4612

CONFIDENTIAL

FM HKB

TO FCOLN

PP FRO

111026Z MAR

GRS 447

CONFIDENTIAL

FM BTC HONG KONG TO PRIORITY FCO TELNO 85

OF 111026Z MARCH 92

AND TO PRIORITY SEOUL

PERSONAL FOR RICKETTS

HKD

PERSONAL FOR AMBASSADOR, SEOUL

(48

49

HKA 182/3

Mc Furness

Com

M.. Menta; R&R

action

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حمر

4/3

Tel

Mr Skäre

12/2

I suppose He answer

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Provided he draws

& He right tots evelyn? The should fapy

YRTELNO 96 TO SEOUL KOREAN BID FOR HONG KONG AIRPORT PROJECT, BRIDGE CONTRACT

39 1. THANK YOU FOR COPYING THIS EXCHANGE TO ME. YOUR TUR REFERS TO THE INFORMATION BEING SENT TO ME FOR MY PERSONAL BACKGROUND. IT WOULD BE HELPFUL TO KNOW WHAT, IF ANY, USE YOU PROPOSE SHOULD BE MADE OF THE INFORMATION IN SEOUL TELEGRAM 118. UNLESS YOU HAVE ANY OBJECTIONS, AND UNLESS IT CUTS ACROSS OTHER PLANS, I HOPE YOU MIGHT AGREE THAT I COULD DRAW ON IT DISCREETLY AND UNATTRIBUTELY IN CONVERSATIONS HERE WITH THOSE CONCERNED WITH THE AWARD OF THE

CONTRACT.

2. IN THIS EXERCISE WE ARE NOT ALONE. BOTH THE TRAFALGAR HOUSE LED GROUP AND THE BOUYGUES (FRANCE) LED GROUP FULLY REALISE THAT THEY ONLY STAND A CHANCE IF THE HONG KONG GOVERNMENT ARE CONVINCED THAT THERE ARE RISKS INVOLVED IN AWARDING THE CONTRACT TO HYUNDAI. TRAFALGAR HOUSE AND JARDINES HAVE BOTH BEEN PREPARING (AND SUING) LISTS OF HYUNDAI'S FAILURES AND DIFFICULTIES. THE FRENCH LED GROUP HAVE BEEN DOING THE SAME. TRAFALGAR HOUSE PREPARED A DRAWING OF THE LARGEST BRIDGE BUILT SO FAR BY HYUNDAI WHICH WAS TINY BY COMPARISON, AND HAVE GIVEN THIS TO MEMBERS OF THE HONG KONG ADMINISTRATION.

THESE

3. THERE IS CERTAINLY A MOOD AFOOT HERE TO DISCOUNT THE KOREAN ABILITY TO PERFORM. AMONG THOSE SAYING STRONGLY AND REPEATEDLY THAT IT WOULD BE A MISTAKE TO AWARD THE CONTRACT TO THE KOREANS ARE RICHARD ALLEN, CHIEF EXECUTIVE OF THE PROVISIONAL AIRPORT AUTHORITY (PAA), AND DAVID GLEDHILL, CHAIRMAN OF SWIRES (HK) AND A MEMBER OF THE PAA AND TIPPED TO BECOME CHAIRMAN OF THE PERMANENT PROVISIONAL AIRPORT AUTHORITY WHEN IT IS CREATED. REMARKS THEY MAKE IN PRIVATE, BUT THEY ARE UNDOUBTEDLY KNOWN TO MEMBERS OF THE ADMINISTRATION. GLEDHILL IS INCLINED TO ADD, SOMEWHAT UNHELPFULLY, THAT IT IS ONLY THE JAPANESE WHO HAVE RELEVANT EXPERIENCE OF A RAILWAY BRIDGE AND THAT THEY THEREFORE SHOULD BE BROUGHT INTO IT, WHOEVER WINS. THIS LINE OF THOUGHT TRAFALGAR HOUSE GROUP MIGHT BE ABLE TO COUNTER BY STRESSING THEIR MITSUI COMPONENT.

4. MEANWHILE I AM ALSO GETTING SOME LOBBYING FROM KIER TO REMIND US THAT THE BOUYGUE LED GROUP CONTAINS THEM AS WELL AS MAUNSELL AND MIDLAND BANK OF THE UK. THEY DECLINED TO ANSWER MY DIRECT QUESTION ON KIER'S SHARE OF THE CONSORTIUM. MY GUESS IS THAT IT IS AROUND 15 PERCENT. THIS WOULD PROVIDE A USEFUL CONSOLATION PRIZE IF THEY WERE TO BE SUCCESSFUL, BUT IT IS NOT TO BE COMPARED TO THE BRITISH CONTENT OF THE TRAFALGAR HOUSE LED GROUP.

A full set of fels

Aess to ahress fo Mr Hall

Mh. Marta Jer actin pre

4.√AM

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116

FULL SET OF

TELS SENT TO

HALL (PEP/DT)

16/3 AM