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WOULD BE ENORMOUSLY DAMAGING FOR THE NATIONAL ECONOMY AND WOULD HAVE UNTOLD CONSEQUENCES, PARTICULARLY FOR THE ARMY OF SUBCONTRACTORS.
3. IN THIS REGARD, IT SHOULD NOT BE FORGOTTEN THAT HYUNDAI HAVE JUST SUFFERED A LONG AND DAMAGING STRIKE IN THEIR MOTOR VEHICLE SUBSIDIARY. YET THE GOVERNMENT WERE PREPARED TO THREATEN THE STRIKERS WITH A MASSIVE MOBILISATION OF RIOT POLICE AND THE PROSPECT OF A VIOLENT CONFRONTATION IN ORDER TO END THE STRIKE WHICH WAS DAMAGING AUTOMOBILE EXPORTS AND PUT SUBCONTRACTORS OUT OF BUSINESS. AND ANOTHER PART OF THE HYUNDAI GROUP HAS JUST WON A MAJOR CONTRACT FOR PROVISION OF NEW SUBWAY CARS FOR THE SEOUL SUBWAY, AGAINST STIFF COMPETITION FROM GEC WHO WON THE ORIGINAL ORDER SOME YEARS AGO.
4"
BECAUSE OF THE PROFOUND UNCERTAINTIES OF THE POLITICAL SITUATION HERE OVER THE NEXT 2-3 YEARS AND BECAUSE OF THE CHUNG FAMILY'S OWN CURRENT INVOLVEMENT IN POLITICAL HARD-POUNDING, IT IS DIFFICULT TO SPECULATE ON WHAT THE GOVERNMENT MIGHT DO IF HYUNDAI NEEDED TO BE BAILED OUT OF A LARGE OVERSEAS PROJECT. THERE ARE PRECEDENTS FOR THE GOVERNMENT FORCING COMPANIES TO WHOM THEY HAVE TAKEN A DISLIKE, AND WHICH HAVE BECOME OVERSTRETCHED, INTO BANKRUPTCY. EQUALLY THEY HAVE FREQUENTLY COME TO THE ASSISTANCE OF PRESTIGE COMPANIES IN TROUBLE. IF HYUNDAI WERE TO FACE TROUBLE OVER THIS PROJECT, AND THE COMPLEXION OF THE GOVERNMENT IN POWER WERE BROADLY SIMILAR TO THIS ONE, THE GOVERNMENT WOULD ALMOST CERTAINLY SEEK TO RESUME THE PROJECT AT THE EXPENSE OF HYUNDAI'S STANDING. IT IS UNLIKELY THAT THE GOVERNMENT WOULD ALLOW KOREA'S INTERNATIONAL IMAGE TO SUFFER THROUGH THE COLLAPSE OF SUCH A MAJOR PROJECT. PARTS OF THE CORPORATION WOULD BE BROKEN UP TO THE BENEFIT OF HYUNDAI'S COMPETITORS.
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5. WE ARE NOT (NOT) OF COURSE QUALIFIED TO JUDGE HYUNDAI'S TECHNICAL CAPABILITY TO TACKLE THIS PROJECT. WE ASSUME THAT THIS SHOULD HAVE BEEN FULLY ESTABLISHED IN THE PREQUALIFICATION EXERCISE AND THE RFP PROCEDURE. NEVERTHELESS:
A) WE KNOW OF NO MAJOR CIVIL ENGINEERING PROJECTS OF THIS DEGREE OF SOPHISTICATION TACKLED BY HYUNDAI. LIKE OTHER KOREAN CONSTRUCTION COMPANIES, THEIR TRACK RECORD IS AT ITS HIGHEST IN MORE CONVENTIONAL PROJECTS. ON THE OTHER HAND, SIMILAR RESERVATIONS WERE EXPRESSED ABOUT HYUNDAI'S ABILITY TO CONSTRUCT THE
TECHNICALLY SIMPLER - PENANG BRIDGE, TEN OR SO YEARS AGO. THEY DID
SO, SUCCESSFULLY.
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