TNAG-2410-FCO40-3504-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1992 — Page 65

UNCLASSIFIED

056320

MDLIAN 5817

THE BALFOUR BEATTY LED CONSORTIUM IS THE ONLY ONE OF THE SIX CONSORTIA SUBMITTING BIDS WHICH HAS A BRITISH INVOLVEMENT. THE CONTRACT IS ESTIMATED TO BE WORTH ABOUT GBP125 MILLION. THE CONTRACT WILL PROBABLY BE AWARDED IN EARLY 1993. BALFOUR KILPATRICK ARE BIDDING SEPARATELY FOR THE RELATED ELECTRICAL AND MECHANICAL EQUIPMENT CONTRACT.

COMMENT

5. THE STOCK EXCHANGE HAS SEEN MINOR FLUCTUATIONS THIS WEEK BUT REMAINS CLOSE TO ITS ALL TIME HIGH FOR THIS YEAR. HONG KONG GOVERNMENT HAS JUST ANNOUNCED THAT IT IS COMMITTED TO SPENDING ABOUT GBP6.5 BILLION ON CAPITAL WORKS PROJECTS, EXCLUDING THOSE RELATED TO THE AIRPORT CORE PROGRAMME, IN THE 5 YEARS TO 1997. THIS IS 42 PERCENT MORE THAN TOTAL EXPENDITURE ON CAPITAL WORKS IN THE PAST 5 YEARS. THIS AMBITIOUS PROGRAMME SERVES TO BOLSTER

CONFIDENCE IN THE ECONOMY.

DAY

YYYY

ΜΑΙΝ

63

DISTRIBUTION

73

.HK POLICY

HKD

PUSD

FED

LEGAL ADVISERS//MS BARRETT

.AND MS BROOKS

NEWS D

PLANNERS

RAD

PS

PS/MR GOODLAD

SIR J COLES MR APPLEYARD

MR HUM

ADDITIONAL

10

CAOFF//SIR R BRAITHWAITE

CAOFF//MISS NEVILLE-JONES

CAOFF//MR SIBSON CAOFF//MS D CORNER

CAOFF //MR CHARLTON

.DTI//VICTORIA ST

PS/PM

NNNN

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UNCLASSIFIED