CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 129
OF 16075OZ JANUARY 92
4
CONFIDENTIAL
HKA 182/3
10
006456 MDLIAN 7644
PERSONAL FOR RICKETTS HKD FROM GOVERNOR.
YOUR TELNO 32: HONG KONG AIRPORT PROJECT.
1. THE FIGURES QUOTED IN THE 3 JANUARY SCMP ARTICLE ON THE TSING MA BRIDGE TENDER ARE INACCURATE. WE UNDERSTAND THAT THE REPORTER SPOKE TO ALL THE BIDDERS: IT IS LIKELY THAT HE WAS THE BUTT OF
SOME DELIBERATE MISINFORMATION.
2. ON THE TENDER ITSELF, WE ARE NOW ONLY AT THE PRELIMINARY ASSESSMENT STAGE. AN EXPERT TEAM IN THE GOVERNMENT IS VETTING THE PROPOSALS. IN THIS, WE HAVE HAD THE HELP OF AN INTERNATIONAL TECHNICAL ADVISORY BOARD, WHICH INCLUDES BRITISH, AMERICAN AND JAPANESE EXPERTS. LATER THIS MONTH, THE FOUR TENDERERS WILL BE INVITED TO MAKE A PRESENTATION AND TO CLARIFY IN WRITING SPECIFIC
ISSUES ARISING FROM THEIR BIDS. CONSIDERABLE FURTHER WORK IS
NECESSARY BEFORE WE WILL BE ABLE TO COMPARE OUR ORIGINAL PROJECTED COST TO THE ACTUAL OUT-TURN. BUT THE EARLY INDICATIONS ARE THAT OUR POLICY OF STICKING OUT FOR FIXED-PRICE LUMPSUM CONTRACTS, AND RELYING ON COMPETITION TO KEEP PRICES DOWN, WILL
BE VINDICATED.
3. THE INAUGURAL MEETING OF THE AIRPORT COMMITTEE WAS HELD ON 12 NOVEMBER. NO DATE HAS YET BEEN FIXED FOR THE SECOND FORMAL PLENARY MEETING. HOWEVER, A NUMBER OF BRIEFING MEETINGS ARE BEING LINED UP IN THE COMING 6-8 WEEKS ON THE WESTERN HARBOUR CROSSING, THE AIRPORT RAILWAY AND THE AIRPORT AUTHORITY LEGISLATION. DEPENDING ON THE FINANCING STRATEGY ADOPTED FOR THE TSING MA BRIDGE, WE MAY ALSO NEED TO DISCUSS THE SUBJECT WITH THE CHINESE IN A FEW MONTHS' TIME.
4. AN INITIAL BRIEFING ON THE TECHNICAL ASPECTS OF THE WESTERN HARBOUR CROSSING WAS GIVEN TO THE CHINESE SIDE ON 31 DECEMBER. WE WILL BRIEF THEM ON THE PRINCIPLES OF THE FRANCHISE SOME TIME NEXT WEEK, NOW THAT THESE HAVE BEEN AGREED BY EXCO.
5. THE AIRPORT COMMITTEE HAS ALSO BEEN GIVEN A TECHNICAL BRIEFING
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CONFIDENTIAL
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