CONFIDENTIAL
90°
HKA 182/3
136166
MDHIAN 1816
CONFIDENTIAL
FM BTC HONG KONG
TO IMMEDIATE DTI
TELNO INTRA 116
OF 281025Z APRIL 92
AND TO IMMEDIATE FC O
TOP COPY ODICT?
INFO PRIORITY ECGD, PEKING, SEOUL, TOKYO
FOR HALL, HEAD OF PEP
HONG KONG AIRPORT PROJECT: THE MAIN BRIDGE CONTRACT
SUMMARY
1.
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IT SEEMS INCREASINGLY LIKELY THAT THIS CONTRACT WILL GO TO THE ANGLO-JAPANESE GROUP AND THAT THIS MAY BE ANNOUNCED NEXT WEEK.
DETAIL
2.
MEMBERS OF THE ANGLO-JAPANESE GROUP NOW BELIEVE THAT THE LAST REMAINING OBSTACLES TO AN AGREEMENT HAVE BEEN REMOVED. DURING THIS WEEK AGREEMENT HAS BEEN REACHED ON INSURANCE CONDITIONS ON WHICH THERE HAD BEEN A SIGNIFICANT PRICE DISPUTE, AND WHERE THE HONG KONG ADMINISTRATION HAD THREATENED TO CALL IN THE FRENCH LED GROUP FOR PARALLEL DISCUSSIONS. THIS NOW SEEMS TO BE RESOLVED AND WE ARE NOT AWARE OF ANY OTHER OUTSTANDING POINTS. IT IS ALWAYS POSSIBLE THAT HYUNDAI OR THE FRENCH LED GROUP ARE STILL IN CONTENTION, BUT IT SEEMS UNLIKELY.
3.
THE PRESS HERE HAVE BEGUN TO CARRY REPORTS THAT AN AWARD TO TRAFALGAR HOUSE/COSTAIN/MITSUI IS IMMINENT. THIS DOES NOT SEEM TO BE PROVOKING ANY REACTION OTHER THAN SOME STRONG REMARKS FROM HYUNDAI REPRESENTATIVES WHO, NOT SURPRISINGLY, ARE BEGINNING TO CRY 'FOUL'. NEVERTHELESS IF AND WHEN THE CONTRACT AWARD IS ANNOUNCED, AND IF WE ARE SUCCESSFUL, THEN WE CAN EXPECT CONSIDERABLE CRITICAL COMMENT AND SUGGESTIONS OF UNDUE BRITISH INFLUENCE. WE WILL NEED TO BE READY TO COMBAT THIS, AND I SOUGHT TO PREPARE THE GROUND IN A FAREWELL SPEECH TO THE BRITISH CHAMBER OF COMMERCE TODAY 28 APRIL.
IT APPEARS THAT THE RECOMMENDATION ON THE AWARD OF THE CONTRACT WILL BE PUT TO EXCO ON TUESDAY 5 MAY, WHICH IS THE DATE
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CONFIDENTIAL
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