CONFIDENTIAL COMMERCIAL IN CONFIDENCE
PAD / BLITISH INTEREST
185
HKA 182/3
CONFIDENTIAL
COMMERCIAL IN CONFIDENCE
FM FCO
TO DESKBY 26013OZ HONG KONG
TELNO 1658
OF 251849Z NOVEMBER 92
INFO IMMEDIATE BTC HONG KONG, BRUSSELS, THE HAGUE
NEW HONG KONG AIRPORT: SITE PREPARATION CONTRACT.
105045
MDHOAN 4798
TOP COPY Q DIST?
1
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We have learned from ECGD with whom Costain and Schroders (please protect) have been in touch, that two members of the consortium to be awarded the site preparation contract, Jan de Nul (Belgium) and Ballast Needam (Dutch), believe that their respective export credit agencies are likely to require an unconditional Hong Kong Government guarantee or equivalent security eg unconditional ILC, before agreeing credit facilities. Efforts by Schroders to explain the nature of the funding of this contract ie HKG equity injection into the PAA have not allayed Dutch and Belgian concerns.
2. Costain, who are not seeking ECGD credit facilities themselves, are concerned that if the above requirement is not met, there is a chance that both companies will be obliged to withdraw. If we receive any further information we will pass it to you.
However, you may wish to contact Costain and Schroder in Hong Kong to see if they are aware how matters stand. Please Let us know if there is anything you would like us to do from this end. We could, for example, ask Brussels and The Hague to take this up with the Belgian and Dutch authorities.
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CONFIDENTIAL COMMERCIAL IN CONFIDENCE
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