TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 36

CODE 18-77

Mr Williamgon liamson

Mr Clift

RESTRICTED

Hick

Reference

12116

ра

CSE

Thank you

میں

A. vocal. F. heup

Pho 116

Q

8%%

3

HONG KONG : MAJOR PROJECTS AND DEVELOPMENTS

MAJOR COMMERCIAL PROJECTS

1.

Hong Kong as trading partner of UK now second to Japan in Asia and are 19th in world. Balance of fiscal trade has for many years been in Hong Kong's favour. UK's improved share of Hong Kong market in past few years due to success in negotiating contracts for a number of major projects. Likely further contracts in the same field and in housing and construction. Following are major projects in progress or under consideration:

Castle Peak 'A' and 'B' Power Stations

a)

b)

In 1977 British group led by GEC and Babcock negotiated contracts worth around £300 M with Lord Kadoorie's China Light and Power Company and Esso Eastern for Castle Peak 'A' Power Station. Progress of construction good; station should be operational by Autumn 1982, when it is hoped Prime Minister will perform inauguration ceremony;

contracts for another power station at same site, Castle Peak 'B' worth at least £550 M signed with the GEC/Babcock group in August 1981. The contracts should secure 5,000 to 7,000 jobs in UK over next 7 years.

Mass Transit Railway (MTR)

c)

Initial stages of MTR finished in 1980 and Tsuen Wan extension in May 1982. UK firms involved in tunnelling and supply of rolling stock and other equipment; total contract worth over £290 M for the main network and around £75.5 M for Tsuen Wan extension. In December 1980 decision was taken to build Island Line extension. In December 1981 Metro-Cammell negotiated £60 M contract for rolling stock with ECGD assistance, having supplied it for initial stages of MTR. Gammon/Kier/Lilley won £17 M contract for station concourse and Marples Ridgeway won two construction contracts valued at £20 M. Gammon/Kier/Lilley currently awaiting decision on major tunnelling contracts, a number of which have disappointingly gone to non-UK competitors. Possibility of £7 M signalling contract for Westinghouse.

Kowloon-Canton Railway

d)

First stage (from Hung Hom in Kowloon to Sha Tin) of electrification and double tracking from Hung Hom to Lo Wu on Chinese border completed May 1982. British involvement £240 M out of around £330 M worth of contracts. In 1981 Metro-Cammell won £72 M contract for rolling stock.

RESTRICTED

/Replacement