RESTRICTED
FM BTC HONG KONG
TO DESKBY 22120OZ DTI
TELNO INTRA 22
OF 220555Z JANUARY 92
AND TO IMMEDIATE F C O
RESTRICTED
HKA 182/3
PERSONAL FOR HALL, HEAD OF PEP, DTI.
AND FOR BURNS, AUSS, FCO.
TOP COPY Q DIST?
HONG KONG AIRPORT PROJECT: LANTAU FIXED CROSSING (THE MAIN
BRIDGE).
SUMMARY
13
023016
MDHIAN 0153
1. THIS CONTRACT WILL SOON BE DECIDED. IT IS BIG ENOUGH TO HAVE A POLITICAL AND COMMERCIAL IMPACT IN THE UK. WE NEED TO CONSIDER WHETHER IT IS APPROPRIATE TO TRY TO INFLUENCE THE HK GOVERNMENT'S CONSIDERATIONS. THE GOVERNOR'S VISIT TO LONDON THIS WEEK IS ONE
SUCH POSSIBILITY.
2. AS DETAILED IN MY TELNO INTRA 7, TENDERS FOR THIS CONTRACT WERE SUBMITTED IN EARLY DECEMBER. ONE OF THE FOUR CONTENDERS IS LARGELY BRITISH, WE BELIEVE THAT THEY LIE SECOND OR THIRD IN PRICE, WITH AN ALL KOREAN BID HAVING COME IN THE CHEAPEST AND ALL JAPANESE BID THE MOST EXPENSIVE. THE PUBLISHED DATE FOR THE ANNOUNCEMENT OF A DECISION AND AN AWARD OF THE CONTRACT IS MAY.
WE KNOW HOWEVER THAT THREE INTERNATIONAL ADVISORS (ONE OF WHOM IS BRITISH) HAVE SUGGESTED TO THE GOVERNMENT THAT THEY CAN REACH A
DECISION BY MARCH. TIME IS THEREFORE QUITE SHORT FOR DETERMINING WHETHER WE CAN OR SHOULD SEEK TO INFLUENCE THE DECISION.
3.
IT HAS NOT SO FAR PROVED EASY TO GET INFORMATION ON THE TENDERS BUT WE BELIEVE THE TRAFALGAR HOUSE/COSTAIN/MITSUI BID IS
WELL-PLACED. WE ALSO BELIEVE IT IS MORE QUALIFIED THAN OTHER BIDS, WHICH WILL COUNT AGAINST THEM. ON THE INFORMATION CURRENTLY AVAILABLE TO US IT SEEMS REASONABLE TO SUPPOSE THAT FOR THE BRITISH BID TO WIN, THE KOREAN BID, WHICH ACCORDING TO ALL REPORTS WAS THE CHEAPEST BY A SIGNIFICANT MARGIN, HAS TO BE DISREGARDED ON GROUNDS OF TECHNOLOGICAL COMPETENCE. THIS WILL NOT
BE EASY SINCE THEY SURVIVED A PRE-QUALIFICATION PROCESS. IT IS WORTH NOTHING HOWEVER THAT HYUNDAI AND THEIR KOREAN ASSOCIATES
HAVE NOT TACKLED A BRIDGE EVEN APPROACHING THE DIMENSIONS AND
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