TNAG-2408-FCO40-3502-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1992 — Page 110

t

CONFIDENTIAL

FM BTC HONG KONG

TO PRIORITY FCO

TELNO 85

OF 111026Z MARCH 92

AND TO PRIORITY SEOUL

CONFIDENTIAL

HKA 182/3

W49

162057

MDLIAN 0793

TOP COPY Q DIST?

la

133

PERSONAL FOR RICKETTS, HKD

PERSONAL FOR AMBASSADOR, SEOUL

YRTELNO 96 TO SEOUL: KOREAN BID FOR HONG KONG AIRPORT PROJECT

BRIDGE CONTRACT

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.

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. THESE 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

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