TNAG-2408-FCO40-3502-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1992 — Page 124

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WITH THE IMPLICATION THAT IT WOULD BE DIFFICULT NOT TO GIVE IT TO THEM ON THE BASIS OF THEIR SIGNIFICANTLY CHEAPER BID). HE ALSO MENTIONED THE PUBLICITY WHICH HAS ATTACHED TO THE AWARD OF THE TERMINAL DESIGN CONTRACT TO THE BAA/NORMAN FOSTER GROUP SAYING THAT THEY COULD OBVIOUSLY EXPECT TROUBLE IF ANY MAJOR CONTRACTS ARE AWARDED TO THE UK. I POINTED OUT THAT THE TERMINAL DESIGN CONTRACT WAS A SMALL ONE IN THE CONTEXT OF THIS PROJECT OVERALL, AND THAT I HOPED IT WOULD NOT BE SEEN AS BRITAIN AS GETTING A SIGNIFICANT SHARE: IT COULD NOT BE COMPARED REMOTELY WITH THE

BRIDGE OR PLATFORM CONTRACTS.

5. IN CONSTRUCTION AND ENGINEERING INDUSTRY CIRCLES THERE IS CLEARLY NEARLY UNANIMOUS PRESSURE UPON THE ADMINISTRATION TO REJECT THE KOREAN BID ON THE GROUNDS THAT IT WOULD BE TOO RISKY

TO GIVE SUCH A INEXPERIENCED GROUP SUCH A MAJOR CONTRACT SO CENTRAL TO THE CRITICAL PATH OF THE WHOLE PROJECT. NONETHELESS GIVEN THE ADMINISTRATION'S ADDICTION TO FULLY COMPETITIVE AND

OPEN TENDERING AND GIVEN THE CHEAPNESS OF THE KOREAN BID, TOGETHER WITH WHAT WE BELIEVE IS QUITE A STRONG PERFORMANCE AT THEIR TALKS WITH THE HONG KONG ADMINISTRATION RECENTLY, IT WILL

STILL BE HARD TO REJECT.

6.

I APPRECIATE THAT IT LOOKS INCREASINGLY LIKELY THAT THE

FINAL DECISION ON THE BRIDGE CONTRACT IS LIKELY TO BE TAKING

SHAPE DURING THE PERIOD WHEN MINISTERS WILL BE WHOLLY OCCUPIED BY

THE ELECTION CAMPAIGN. I HOPE NONETHELESS THAT IT WILL BE

POSSIBLE TO REMIND THEM AS APPROPRIATE OF PROGRESS ON THIS CONTRACT, WITH A VIEW TO KEEPING UP PRESSURE ON THE HONG KONG

ADMINISTRATION.

HEAP

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