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Ase (148
155515
MDLIAN 5613
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FM BTC HONG
KONG
TO PRIORITY DTI
TELNO INTRA 170
OF 2909OOZ JUNE 92
нка 182/3
in Shout 8/7
19/x.
N finess
1mm 9/7
Mr Ehrman & the K'Y Yeung boki mentioned this news
INFO ROUTINE FCO, ECGD, PEKING
FOR HALL, HEAD OF PEP
which is disappointing
higher tender. for HKG as likely to mean a
They thought CHT + CITIC had opted to pool resouces because a financing difficulties. UK parhayation Poltically this time, particularly if we do well the au port platform (on which the
no harm to have no
MY TELNO INTRA 97: WESTERN HARBOUR CROSSING
1.
M
on
Dutch dredgers' cartel has been smashed by the revised call
for tenders). IT WAS REPORTED IN TODAY'S SOUTH CHINA MORNING POST THAT THE S
WHARF CONTROLLED CROSS HARBOUR TUNNEL COMPANY (CHT) AND CITIC
PACIFIC HAVE OPTED TO SUBMIT A JOINT APPLICATION TO HKG ON FRIDAY 3 JULY,
THE CLOSING DATE, FOR THE FRANCHISE TO OPERATE THE WESTERN HARBOUR CROSSING TUNNEL. ALTHOUGH THIS HAS NOT BEEN CONFIRMED BY EITHER GROUP OR INDEED BY HKG, WE UNDERSTAND THAT THE SCMP REPORT IS ESSENTIALLY CORRECT. UNDER THE NEW ARRANGEMENT THE GROUP OF COMPANIES WHICH SUBMITTED A PROPOSAL TO CHT (VIZ MOTTS, AOKI, COSTAIN, TARMAC AND CHRISTIANI NIELSEN) WILL BE DROPPED AND KUMAGAI GUMI AND NISHIMATSU WILL BUILD THE TUNNEL. COSTAIN HAVE NOT YET BEEN FORMALLY TOLD ABOUT THE NEW ARRANGEMENT BUT WATKINSON (LOCAL COSTAIN DIRECTOR) IS MEETING
HIGGINSON (MANAGING DIRECTOR OF CHT) LATER THIS AFTERNOON AND
WILL PRESUMABLY BE INFORMED THEN. THE DECISION WAS APPARENTLY
TAKEN AT A WHARF BOARD MEETING ON FRIDAY 26 JUNE.
2.
THIS IS DEVASTATING NEWS FOR COSTAIN WHO EARLIER FELT
CONFIDENT THEY WERE WELL PLACED TO SECURE THE CONTRACT. THEIR
BID COSTS WERE, AS YOU KNOW, SUBSIDISED FROM OPF. WE CAN ONLY ASSUME AT THIS STAGE THAT CHT CONCLUDED FROM INFORMATION
AVAILABLE TO THEM THAT THEY COULD NOT MATCH CITIC'S BID AND THAT
THEIR ONLY HOPE OF AN INVOLVEMENT IN THE OPERATION OF THE NEW
TUNNEL LAY IN BEING ABLE TO JOIN RANKS WITH CITIC AND CITIC CLEARLY SEE ADVANTAGE IN TAPPING CHT'S EXPERTISE: THEY POSSIBLY
ALSO SEE AN OPPORTUNITY TO EXTEND THE JOINT VENTURE TO INCLUDE
THE ORIGINAL CROSS HARBOUR TUNNEL WHEN CHT'S CURRENT FRANCHISE
ENDS IN 1999.
·
3.
WE WILL DOUBTLESS BE SEEING PETER WOO (CHAIRMAN OF THE WHARF)
BEFORE TOO LONG ABOUT THIS AND OTHER MATTERS AND IT WOULD BE HELPFUL TO HAVE A NOTE OF POINTS RAISED AT HIS DINNER WITH THE
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