UNCLASSIFIED
113033
MDLIAN 9678
IT IS NOT SURPRISING, THEREFORE, THAT THE HONGKONG GOVERNMENT - WHICH FACES ENOUGH UNCERTAINTY OF ITS OWN, WITHOUT BECOMING EMBROILED IN DOMESTIC QUARRELS OVERSEAS SHOULD PROCEED CAUTIOUSLY IN REGARD TO THE HYUNDAI BID. IT IT AWARDED THE BRIDGE CONTRACT TO HYUNDAI IN SUCH CIRCUMSTANCES, THE DOLLARS 2 BILLION PRICE DIFFERENTIAL ON THE TWO TENDERS WOULD NOT SPARE THE GOVERNMENT FROM ACCUSATIONS THAT IT HAD TAKEN AN UNJUSTIFIABLE GAMBLE WHEN AWARDING THE CONTRACT FOR ONE OF THE MOST IMPORTANT PHASES OF THE AIRPORT DEVELOPMENT TO A COMPANY UNDER SUCH HEAVY POLITICAL PRESSURE FROM ITS OWN COUNTRY.
THERE IS NO MARGIN FOR ERROR OR DELAY ON THE TSING MA PROJECT, SO IF IN THE NEXT 10 DAYS THE GOVERNMENT CHOOSES TO PLAY SAFE BY OPTING FOR AN ANGLO-JAPANESE TEAM TO BUILD IT, THE KOREANS CAN ONLY BLAME EVENTS IN THEIR OWN COUNTRY INSTEAD OF ACCUSING HONGKONG OF LEANING TOWARDS BRITISH-RUN COMPANIES.
ENDS.
HEAP
YYYY
DISTRIBUTION
31
ΜΑΙΝ
27
HKD
FED//HD
PUSD//HD
PUSD//DPTY HD
ECONOMIC ADVISERS//HD
ERD//HD
RAD//MR WYE
PS
PS/MR GOODLAD
PS/PUS
SIR J COLES
MR BURNS
MR BONE
ADDITIONAL
4
MR HALL HD/PEP DTI
SIR P CRADOCK NO 10. MS B CORNER, CAB OFF
NNNN
ECGD
PAGE
3
UNCLASSIFIED
No comments yet.
Private notes are available after approval.