TNAG-2408-FCO40-3502-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1992 — Page 149

CONFIDENTIAL

HKA 182/3

W34

141107

MDLOAN 9231

CONFIDENTIAL

FM FCO

TO PRIORITY BTC HONG KONG

TELNO 51

OF 042318Z MARCH 92

Pw

FOLLOWING TELEGRAM NOW REPEATED TO YOU AT REQUEST OF HKD BEGINS

FOLLOWING PERSONAL FOR SENIOR BRITISH TRADE COMMISSIONER BTC HONG KONG

CONFIDENTIAL

FM FCO

TO IMMEDIATE SEOUL

TELNO 81

OF 27170OZ FEBRUARY 92

PERSONAL FOR AMBASSADOR FROM RICKETTS, HKD

HONG KONG NEW AIRPORT: KOREAN BID

1.

ONE OF THE MAIN INFRASTRUCTURE CONTRACTS ASSOCIATED WITH HONG KONG'S NEW AIRPORT PROJECT IS A BRIDGE TO LANTAU ISLAND. FOUR CONSORTIA HAVE SUBMITTED BIDS, INCLUDING AN ANGLO-JAPANESE CONSORTIUM LED BY TRAFALGAR HOUSE AND THE KOREAN HYUNDAI ENGINEERING, AND CONSTRUCTION CO LTD. THE HONG KONG GOVERNMENT (HKG) ARE DUE TO DECIDE/BETWEEN BIDS IN THE FIRST WEEK OF APRIL.

2.

-

WE UNDERSTAND IN STRICT CONFIDENCE THAT THE KOREANS SUBMITTED BY FAR THE LOWEST TENDER RUMOURED TO BE SOME HKD5 BN. THE ANGLO-JAPANESE CONSORTIUM SUBMITTED A MORE EXPENSIVE TENDER BUT IS APPARENTLY VERY WELL PLACED.

3.

THERE HAS BEEN SOME FAIRLY OPEN QUESTIONING IN HONG KONG OF THE KOREANS' TECHNICAL ABILITY TO CONSTRUCT WHAT WOULD BE ONE OF THE LARGEST-SPAN BRIDGES IN THE WORLD AND TO DO SO ON TIME AND ON BUDGET. WE UNDERSTAND THAT THE TECHNICAL SPECIFICATIONS IN THEIR TENDER FOR THIS PROJECT WERE UP TO SCRATCH (THERE WAS OF COURSE A PREQUALIFICATION EXERCISE). GIVEN THE APPARENTLY SIGNIFICANT DIFFERENCE IN PRICE, IT IS POSSIBLE THAT THE HKG MAY TAKE A RISK AND GO FOR THE KOREANS.

4

IN VIEW OF THE CRUCIAL IMPORTANCE OF THIS PROJECT FOR

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