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055266
MDHIN 1537
BECHTEL OF THE USA. THE OVERALL FINANCIAL CONSULTANTS ARE MORGAN STANELY, ALSO AMERICAN. THE PROVISIONAL AIRPORT AUTHORITY (PAA) ARE ABOUT TO APPOINT FINANCIAL ADVISERS AND EVERYTHING POINTS TO THIS GOING TO JP MORGAN OF THE USA, EVEN THOUGH ALL THE TOP BRITISH MERCHANT BANKS WERE IN COMPETITION. IT IS TRUE A LOT OF CONSULTANCY CONTRACTS HAVE GONE TO BRITISH LINKED FIRMS, BUT THESE ARE MOSTLY LOCAL PARTNERSHIPS WITH VERY LOOSE ASSOCIATIONS WITH A BRITISH PARENT OR FOUNDING COMPANY, SO ANY EARNINGS FLOWING BACK TO THE U.K. FROM THESE ARE NOT LIKELY TO BE SIGNIFICANT. FOR THE U.K. TO ACHIEVE REAL COMMERCIAL BENEFIT IT IS VERY IMPORTANT THAT BRITISH FIRMS LAND SOME OF THESE MAJOR CONSTRUCTION CONTRACTS (AS WELL AS, LATER, SOME OF THE VERY BIG EQUIPMENT CONTRACTS). SUCCESS BY TRAFALGAR HOUSE/COSTAIN FOR THE BRIDGE IN PARTICULAR WOULD BRING SIGNIFICANT ORDERS TO MANY OTHER BRITISH COMPANIES AND THEREBY WOULD SIGNIFICANTLY ENHANCE NOT ONLY OVERALL INDUSTRIAL OUTPUT BUT ALSO EMPLOYMENT IN MAY PARTS OF THE U.K. THE BRITISH COMPANIES SO FAR ARE COMPETING WELL. TO BACK THIS EFFORT WITH APPROPRIATE POLITICAL SUPPORT IS NOW IMPORTANT.
9.
AS IMPORTANT TO THE U.K. AS ANY PART OF THE AIRPORT PROJECTS IS THE BLACK POINT POWER STATION PROJECT. AN EVALUATING TEAM LED BY MICHAEL KADOORIE, SIR WILLIAM STONES AND OTHERS OF CLP AND EXXON HAVE BEEN IN BRITAIN DURING THE LAST WEEK. ALL REPORTS SUGGEST THAT THEY WERE DELIGHTED (AS INDEED THEY SHOULD HAVE BEEN) WITH THEIR RECEPTION BY THE PRIME MINISTER AND SEPARATELY BY MR WAKEHAM AND MR LILLEY. OVER THE COMING WEEKS THEY WILL DECIDE WHETHER TO NEGOTIATE A CONTRACT WITH GEC ALSTHOM, OR WITH SIEMENS, OR WHETHER TO SET UP A COMPETITIVE BID BETWEEN THE TWO. WE SHOULD KNOW VERY SHORTLY WHETHER THE EFFORTS OF HMG AND OF GEC ALSTHOM DURING THE TEAM'S VISITS TO LONDON WERE ENOUGH TO PERSUADE THEM TO GO WITH GEC ALSTHOM WITHOUT FURTHER COMPETITION. TOTAL ORDERS TO A VALUE OF ABOUT POUNDS 1.5 BILLION ARE AT STAKE, AND THE MAIN CONTRACT IS LIKELY TO BE DECIDED DURING 1992. LORD CAITHNESS IS LIKELY TO HAVE OPPORTUNITY TO MEET WITH LORD KADOORIE AND SIR WILLIAM STONES AND WILL NO DOUBT WISH TO ENDORSE THE EFFORTS OF GEC-A AND THE OTHER BRITISH COMPANIES.
10.
OTHER BIG PROJECTS IN HONG KONG INCLUDE HUGE EXPENDITURE ON NEW SEWERAGE SCHEMES AND OTHER POLLUTION CONTROL MEASURES. THESE ARE A LITTLE FURTHER DOWN THE ROAD BUT DECISIONS MIGHT BE TAKEN IN 1992 AND THEY HOLD OUT BIG PROSPECTS FOR BRITISH COMPANIES. BIG CONTAINER PORT DEVELOPMENTS WILL ALSO BE DECIDED THIS YEAR. HONG KONG BUSINESSMEN, AND MOST NOTABLY GORDON WU, WILL BE
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