CONFIDENTIAL
XCC(92)89
CHINA ANGLE
36
The Tsing Ma Bridge is scheduled to be completed in May 1997 with works starting in May this year. Since the contract does not create contingent liabilities straddling 30 June 1997, there is no need to consult the Chinese on its award.
37
The press has published accusations (originating from Hyundai) of HKG being exceptionally harsh on the Korean bidder, and extending favouritism to the Anglo-Japanese because of British interests. The left wing press has consistently referred to the Hyundai bid as the "Sino- Korean Consortium". There is, in fact, no Chinese equity partnership with Hyundai, although a major PRC construction company, China Road and Bridge, is expected to become a very substantial sub-contractor if Hyundai were to win the contract.
38
To minimize the possibility of misunderstanding arising from misleading press reports, we offered a briefing for Ambassador Guo Feng- min, the Senior Chinese Representative to the Joint Liaison Group on 16 April 1992. We explained to him Hyundai's financial problems and our serious doubts about its weakness in project management.
39
In response, Ambassador Guo said that the Chinese Side would consider our explanation and ask questions/comment in detail later. He stressed that the Chinese Side was very concerned about some misleading reports about the Chinese Side's attitude and would consider making a clarification at the appropriate time. He requested HKG to proceed prudently and fairly and to inform the public about relevant issues.
40
As promised, we shall brief the Chinese separately before any public announcement of the final decision is made.
PUBLIC REACTION
41
The public and the media will pay close attention to the award of the Tsing Ma Bridge contract, given its significance for the ACP. Many reports in the press have anticipated the rejection of Hyundai's tender, with critical comments.
Executive Council
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