CONFIDENTIAL
155540
MDHIAN 6182
(C) BRIEFING FOR LECGO ON 27 APRIL.
(D) APPROVAL BY FC ON 15 MAY.
LANTAU FIXED CROSSING
13.
OUR ANALYSIS OF THE FOUR BIDS FOR THE CONSTRUCTION OF THE LFC IS MAKING GOOD PROGRESS.
14.
ALL BIDDERS HAVE MADE OFFERS OF FINANCE. THE FINANCE PACKAGE IS NOT CRITICAL TO OUR ABILITY TO BUILD THE BRIDGE. SOME PROPOSALS WOULD NEED DISCUSSION WITH THE CHINESE SIDE IN THE AC BEFORE WE COULD ACCEPT (I.E., THEY INVOLVE HKG GUARANTEES OF OUTSTANDING HKG DEBT EXCEEDING DOLLARS 5 BILLION AT 30 JUNE 1997). WE HAVE MADE NO FIRM DECISION ON SUCH POTENTIAL COMMITMENTS YET. IT IS IMPORTANT THAT ANY AC DISCUSSIONS DO NOT CAUSE THE AWARD OF THE CONTRACT TO SLIP AS TIMING FOR THE CONTRACT IS CRITICAL.
CONCLUDING REMARKS
15.
•
THE PROGRESS OF THE REST OF THE ACP IS SATISFACTORY, ALTHOUGH TIMING IS EXTREMELY TIGHT NOTABLY ON THE LFC. WE SHALL NEED TO MAKE THE CHINESE SIDE UNDERSTAND CLEARLY THAT IF THEY SLOW DOWN THE DECISION-MAKING PROCESS SIGNIFICANTLY, COMMITMENTS WILL SLIP BEYOND 30 JUNE 1997 AND THE SAR WILL HAVE TO PICK UP THE TAB.
16.
WE SHALL CONTINUE TO UPDATE YOU ON GENERAL PROGRESS AND CURRENT ISSUES ON A MONTHLY BASIS.
WILSON
YYYY
ΜΑΙΝ
30
DISTRIBUTION
34
.HONG KONG AIRPORT RESTRICTED HKD
LEGAL ADVISERS//MISS BROOKS PUSD//HD
PLANNERS//HD RAD//MR WYE
PS
PS/LORD CAITHNESS
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CONFIDENTIAL
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