TNAG-2591-FCO40-3779-Appointment-of-Chris-Patten-as-new-Governor-of-Hong-Kong--Ap-1992 — Page 120

HKD 010/1

CONFIDENTIAL

76

CONFIDENTIAL FM HONG KONG

TO IMMEDIATE FCO

TELNO 1162

ADVANCE SADY

DB.

OF 281129Z APRIL 92

for John Mon's WILH

136214

MDADAN 7601

wit

и

Makatten,

ил

Fi.

pa

FOR RICHARD HOARE, PS/GH VISITING WITH LORD WILSON, FROM FINANCIAL SECRETARY, HONG KONG

TSING MA BRIDGE TENDERS

1. WE SHOULD BE GRATEFUL IF YOU COULD PASS THIS MESSAGE TO THE

GOVERNOR.

2. 'IN A MINUTE TO THE FS DATED 25 APRIL, YOU ASKED US TO LOOK AS THE POSSIBILITY OF AN EXCO PAPER FOR 5 MAY SEEKING EXCO'S CONFIRMATION OF THE DECISION ON THE AWARD OF THE TSING MA BRIDGE CONTRACT. YOU ALSO AKSED US TO CONSIDER A SPECIAL BRIEFING FOR FINANCE COMMITTEE.

3. REGARDING YOUR FIRST POINT, WE HAVE A TECHNICAL PROBLEM. AGC'S LEGAL ADVICE IS THAT IN DECIDING ON THE TENDER ACCORDING TO ESTABLISHED TENDER PROCEDURES, WE SHOULD AVOID CREATING A SITUATION IN WHICH THE SECRETARY FOR THE TREASURY (THE LEGAL AUTHORITY FOR THE TENDER AWARD) COULD BE SEEN TO BE ACTING UNDER DIRECTION. THIS COULD HAPPEN IF EXCO CONFIRMS THE TENDER DECISION (BECAUSE THE IMPLICATION IS THAT IF EXCO DID NOT CONFIRM IT, S FOR TSY WOULD HAVE TO RECONSIDER IT).

THE

4. THIS MAY APPEAR OVERLY LEGALISTIC: BUT IT IS WORTH TAKING GREAT PAINS TO ENSURE THAT ANY DECISION WE MAKE CANNOT BE UNPICKED BY AN UNSUCCESSFUL TENDERER WHO DECIDES TO TAKE THE CASE

TO COURT.

5. IF WE ARE DETERMINED TO PUT THE TENDER AWARD TO EXCO FOR A DECISION/DECISION, WE SHALL HAVE TO INVOKE A PROVISION UNDER THE PUBLIC FINANCE ORDINANCE TO ALLOW YOU TO ISSUE A DIRECTION. THIS HAS NEVER BEEN DONE BEFORE, AND COULD GIVE RISE TO UNNECESSARY SUSPICION OF UNFAIR PLAY.

6. I THEREFORE SUGGEST THAT WE INFORM/INFORM EXCO ABOUT THE AWARD OF THE TENDER, BUT SEEK THEIR ADVICE ABOUT THE PUBLICITY ANGLE.

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