RESTRICTED
FM BTC HONG KONG
TO PRIORITY
TELNO 73
FCO
OF 24090OZ FEBRUARY 92
INFO PRIORITY DTI, ECGD
RESTRICTED
Pa
HKA 182/3
Mesta
3
TOP COPY Q DIST?
36
106513
MDLIAN 6314
DTI FOR PEP AND OT2/2.
HONG KONG PROJECTS AND VISIT BY DAVID HALL, HEAD OF PEP, AND RICHARD ROGERS OF PEP.
SUMMARY
1. HALL AND ROGERS COMPLETED A SUCCESSFUL VISIT ON 21 FEBRUARY. THEY WILL BE PRODUCING THEIR OWN REPORT ON THEIR EXTENSIVE ROUND OF TALKS IN HONG KONG. THE FOLLOWING NEW POINTS ABOUT PARTICULAR PROJECTS EMERGED DURING THE COURSE OF THEIR DISCUSSIONS.
DETAIL
2. HONG KONG AIRPORT
(A) THE BRIDGE CONTRACT. THE GOVERNOR CONFIRMED THAT THE KOREAN BID WAS THE CHEAPEST, THAT THE TRAFALGAR HOUSE LED BIDS WERE VERY CLOSE AND THAT THE JAPANESE BID WAS SUFFICIENTLY EXPENSIVE THAT IT WAS LIKELY TO BE DISCARDED. THIS CONFIRMS WHAT WE HAD SURMISED, BUT IT WAS THE FIRST FIRM CONFIRMATION WE HAVE HAD OF THESE POSITIONINGS OTHER THAN THAT OF THE KOREANS. IT IS PARTICULARLY INTERESTING AND SIGNIFICANT THAT THE JAPANESE ARE LIKELY TO BE DROPPED.
(B) THE PLATFORM CONTRACT. THE DATE FOR SUBMISSION OF TENDERS HAD BEEN DELAYED AGAIN UNTIL 12 MARCH. ALLEN OF THE PROVISIONAL AIRPORT AUTHORITY LAID CONSIDERABLE STRESS ON THE IMPORTANCE OF THE ATTITUDE OF THE NATIONAL EXPORT CREDIT AGENCIES. HE SAID HE SAW IT AS IMPORTANT THAT THEY SHOULD BE ABLE TO ASSESS THE FINANCES ON A PROJECT AS WHOLE RATHER THAN ON A PIECEMEAL BASIS, AND QUOTED THE PRECEDENCE OF THE MASS TRANSIT RAILWAY. IN HIS WORDS, THEY WOULD NEED TO KNOW WHEN LETTING THE CONTRACT FOR THE FIRST PACKAGE THAT FUNDING WAS AVAILABLE FOR THE WHOLE. HALL AND ROGERS IN LATER DISCUSSIONS WITH THE GOVERNOR SUGGESTED THAT ECGD MIGHT FIND A MORE PIECEMEAL APPROACH MORE COMFORTABLE.
(C) TERMINAL DESIGN CONTRACT. THERE WERE STRONG INDICATIONS FROM
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