TNAG-2408-FCO40-3502-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1992 — Page 78

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MDLIAN 187,

JU-YUNG TO SEVER ALL HIS LINKS WITH THE COMPANY IF HE CONTINUES POLITICAL CAMPAIGNING.

4. WE POINTED OUT TO CHAIRMAN CHUNG THAT HIS GROUP HAD TO REALISE THAT IF THEY PUT IN BIDS FOR CONTRACTS OF THIS NATURE (WE MENTIONED THE BID WITH BALFOUR-BEATTY AND OTHERS FOR THE MAJOR AIRPORT PROJECT) AND AT THE SAME TIME BECOME EXPOSED POLITICALLY IN KOREA IN A STRUGGLE WITH THE GOVERNMENT, FOREIGN GOVERNMENTS, ESPECIALLY OUR OWN IN TERMS OF HONG KONG, WOULD BE SOUND TO CONSIDER THE IMPLICATIONS OF ALL THIS, ESPECIALLY IF THERE WAS A RISK OF HYUNDAI FACING FINANCIAL DIFFICULTIES.

COMMENT

5. OUR CONVERSATION LEFT ME IN NO DOUBT THAT THE GOVERNMENT ARE WAGING A WAR OF ATTRITION AGAINST HYUNDAI AND THAT THIS WILL CONTINUE UNABATED, AT LEAST UNTIL THE GENERAL ELECTION RESULTS CLARIFY THE POLITICAL STRENGTH OF HYUNDAI'S EX-CHAIRMAN CHUNG JU-YUNG. THEREAFTER, MUCH WILL DEPEND ON HIS ABILITY TO INFLUENCE EVENTS THROUGH HIS SEATS IN THE NATIONAL ASSEMBLY. AND MATTERS WILL NOT REST WITH HIS INFLUENCE ON THE ASSEMBLY ITSELF. THE NEXT POLITICAL BATTLE-GROUND WILL BE THE PRESIDENTIAL ELECTIONS AT THE END OF THE YEAR.

6.

THAT SAID, I HAVE NO DOUBT THAT THE GOVERNMENT WOULD COVER THE COMPANY'S EXPOSURE ON THE BRIDGE. NOT ONLY WOULD IT BE IMPORTANT FOR NATIONAL PRESTIGE TO CARRY THE PROJECT THROUGH, BUT SUCCESS IN HONG KONG WOULD ESTABLISH KOREA AS A CIVIL ENGINEERING COUNTRY OF INTERNATIONAL STANDING. ON A PAROCHIAL LEVEL, THE GOVERNMENT BROKE UP THE HYUNDAI STRIKE WHEN IT BECAME A THREAT TO THE BALANCE OF PAYMENTS. ON A PROJECT LIKE THE BRIDGE, THEY WOULD CERTAINLY SEE TO IT THAT KOREA FINISHED WHAT IT STARTED.

WRIGHT

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