TNAG-2478-FCO40-3608-Trade-relations-between-Hong-Kong--the-UK-and-other-countrie-1992 — Page 90

19 MAR

'92 11:40 DTI SEATAG 071'215'4781 CUMM

FAX TRANSMISSION

For

P.1/12

BRITISH TRADE COMMISSION IN HONG KONG

9th Floor Bank of America Tower 12 Harcourt Road Hong Kong Mail Address GPO Box No 528 Hong Kong

Tolex HX 7303! Cable Address Uktrado Hong Kong Telephone 5230176

FAX NUMBER: 8452870

RECEIVER FAX: 71 931 0397

Michael Stone

HKD FCO

PAGE 1 OF 1

DATE:

18 March 1992

TO:

FROM:

Jean Gray, OT2/2D, DTI

James Smith-Laittan

Dear Dean

бай

Ола

+

DELTA CROMPTON CABLES

Thank you for your letter of 16 March with which you enclosed the letter from Tim Eggar, MP to the Minister for Trade.

I have spoken to the contracts manager concerned at CLP. He made no mention of the possibility of their benefiting from a South African Government subsidy and it is doubtful we will be able to secure conclusive evidence that this is even being contemplated. In our experience such matters are not explicitly discussed and it would be a very foolhardy supplier who admitted to receiving a factory gate subsidy, even after he had secured the business.

A

surprised if CLP felt a need to do that.

spyskaardigem but I would be

Štate aid to industry is a separate issue and Pretoria are best placed to say what form this usually takes in South Africa and whether the South African Government are breaking international trade agreements.

CLP have decided that their next order for 11kv cable will go out to competitive tender at the end of this month or early next and will not be negotiated. The contract will be awarded at the end of May or early June with a view to supply commencing in January 1993. Delta Crompton have, of course, prequalified and have a good reputation at CLF. There is clearly nothing wrong with their product and if their cables have a clear edge in technical terms, CLP may just be prepared to pay a higher price for them. Other prequalified companies include I understand BICC (UK), BICC (Australia), GEC-A (France), GEC (South Africa) and Hitachi.

Los ancesty писанки Лаев

J Smith-Laittan

Every effort is made to ensure that the information given herein is accurate, but no legal responsibility in accepind for any errors, omissions or usinlending statement in the information caused in negligence or otherwise aud ne responsibility is socepted in regard to the sanding of any firma, companies ar

individuats mentioned.

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