TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 122

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HOFO 023/02

F

DO I

GR 320

UNCLASSIFIED

COMMERCIAL IN CONFIDENCE

FM BTC HONG KONG #20719Z FEB 2

TO PRIORITY DO I

69

NO DISTRIBUTION

TELEGRAM NUMBER INDUS 25 OF 2 FEBRUARY

FOR HAVELOCK, MEED

YOUR INDUS 19. CLEVELAND BRIDGE

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WP.

HK Salon Felior

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CRAWFORD WATT ACCOMPANIED BY FRANK DINSDALE, MANAGING DIRECTOR

OF CLEVELAND BRIDGE AND ENGINEERING CO LTD CALLED THIS MORNING BY

APPOINTTMENT. I SUBSEQUENTLY ACCOMPANIED THEM ON A CALL ON BILL

STONES AT CLP. ROSS SMITH, PROJECT DIRECTOR OF CASTLE PEAK B STATION, WAS ALSO PRESENT.

2. DINSDALE AND WATT OUTLINED THE PROBLEM CAUSED BY THE PROJECTED.

TAKEOVER AND ENQUIRED WHETHER CLP WOULD ACCEPT A JOINT VENTURE BID

WHICH WOULD STAND EVEN IF THE TAKEOVER PROVED ABORTIVE.

3. STONES RECALLED THAT CLEVELAND BRIDGE AND RDL. HAD PREQUALIFIED SEPARATELY FOR THE STRUCTURAL STEELWORK CONTRACT AT CASTLE PEAK B

TENDERS FOR WHICH CLOSED ON 4 MARCH. A JOINT VENTURE WOULD NEED

A REQUALIFICATION. HE FEARED IT WAS UNATTRACTIVE BECAUSE

AMALGAMATION COULD RESULT IN UNACCEPTABLE MANAGEMENT INTERFACE

PROBLEMS WHICH MIGHT CAUSE DELAYS IN WHAT WAS ALREADY A TIGHT

PROGRAMME. AT THE SAME TIME HE RECOGNISED THAT IT WOULD BE ABSURD

FOR CLEVELAND AND RDL TO PUT IN SEPARATE BIDS WHEN THE FORMER

HAD FULL KNOWLEDGE OF THE PRICES OF ROL.

4. SUPPORTED BY ROSS SMITH HE THEREFORE SUGGESTED THAT THE BEST WAY FORWARD WAS FOR ONE OR OTHER OF THE PARTIES TO WITHDRAW. IF CLEVELAND BRIDGE SUBSEQUENTLY WISHED TO SUB-CONTRACT SOME OF THE WORK TO FORMER RDL FACTORIES THIS COULD BE DISCUSSED UNDER THE SUB-CONTRACT CONDITIONS FOR TENDERING. ROSS SMITH COMMENTED THAT THE WITHDRAWAL OF ONE OP OTHER OF CLEVELAND OR RDL MIGHT REQUIRE THE CLP ECARD TO INVITE A FURTHER TENDERER IN ORDER TO ACHIEVE

AN ACCEPTABLE MINIMUM OF BIDS.