09132OZ
LNMDAN 3813 HMLNAN 6293
CONFIDENTIAL
00 FCOLN
FM HON TO FCOLN
0911 07 OV
GRS 402
CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 2665
OF 09114OZ NOVEMBER 92
INFO IMMEDIATE BTC HONG KONG
HKA 182/3
Mr
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(AnRickerts has seen)
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19. PAD (179 botues to
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of
Chris Robelor's, PEP.DTS.
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9/11
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PERSONAL FOR MORRIS, HKD.
attached.
FROM SECRETARY FOR THE TREASURY.
YOUR FAX DATED 6 NOVEMBER: ACP: TSING MA BRIDGE: TRAFALGAR HOUSE.
1.
THANK YOU FOR FAXING DTI'S UNNUMBERED TELEGRAM OF 6
NOVEMBER. YOU ASKED FOR OUR COMMENTS ON THE CONCERNS RAISED 19N THE ANGLO-JAPANESE CONSTRUCTION'S LETTER TO HEAD OF PROJECTS AND EXPORT POLICY, DTI, DATED 3 NOVEMBER.
TRAFALGAR HOUSE COULD REASONABLY BE REASSURED ALONG THE FOLLOWING LINES
2.
'THE TSING MA BRIDGE FORMS PART OF THE LANTAU FIXED CROSSING, WHICH IS ONE OF THE AIRPORT CORE PROGRAMME PROJECTS LISTED IN THE ANNEX TO THE AIRPORT MEMORANDUM OF UNDERSTANDING (MOU). IT REMAINS THE INTENTION OF THE HKG TO COMPLETE THE PROJECTS LISTED IN THE ANNEX TO THE MOU TO THE GREATEST EXTENT POSSIBLE BEFORE 30 JUNE 1997.
'THIS INTENTION APPLIES WITH PARTICULAR FORCE TO PROJECTS LIKE THE TSING MA BRIDGE CONTRACT, WHICH ARE TO BE FUNDED IN FULL BY THE HONG KONG GOVERNMENT. THE GREAT BULK OF EXPENDITURE WILL FALL BEFORE 30 JUNE 1997. HKG HAS ADEQUATE RESERVES TO MEET ALL ITS OBLIGATIONS UNDER THE CONTRACT.
'UNDER THE TERMS OF THE MOU, NO CONSULTATION IS REQUIRED WITH THE PRC IN RELATION TO THE CONTRACT. NOTWITHSTANDING THIS, THE PRC HAS BEEN KEPT FULLY INFORMED OF PROGRESS. THE CURRENT ABSENCE OF CONSENSUS WITH THE PRC RELATES TO THE AIRPORT AND AIRPORT RAILWAY, AND NOT TO OTHER PROJECTS TO BE PAID FOR IN FULL BY THE HKG'.
3.
WE ARE NOT AWARE OF SIMILAR CONCERNS AMONG OTHER CONTRACTORS. HOWEVER, FOR YOUR INFORMATION ONLY, ONE LENDER BACKING THE AIRPORT PLATFORM CONTRACTORS HAS QUESTIONED WHAT THEIR POSITION WOULD BE IF THERE WERE ANY POST-1997 CONTRACTURAL CLAIMS AND THE PRC, ON BEHALF OF THE SARG, WIPED ITS HANDS OF POST-1997 OBLIGATIONS RELATING TO ACP CONTRACTS. WE HAVE SIMPLY STATED THAT SUCH CONCERNS ARE PREMATURE.
4. THIS CORRESPONDENCE RAISES A RELATED POINT. WE HAVE NOTED WITH SOME CONCERN RECENT QUESTIONS ABOUT THE FINANCIAL STRENGTH OF TRAFALGAR HOUSE (TH), A MAJOR CONSORTIUM MEMBER OF THE ANGLO- JAPANESE CONSORTIUM. WE WOULD BE GRATEFUL IF YOU COULD EMPHASISE TO TRAFALGAR HOUSE THAT THE TSING MA BRIDGE IS A VITAL ELEMENT IN
-
THE ACP. ANYTHING THE CONSORTIUM - AND TH IN PARTICULAR CAN DO Touché !
TO REASSURE US THAT THEIR FINANCIAL POSITION IS SOLID, AND THAT THEIR ABILITY TO COMPLETE THE PROJECT ON TIME WILL NOT BE IN ANY DOUBT, WOULD BE APPRECIATED.
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