CONFIDENTIAL
5.
Mr Glaves-Smith has therefore agreed to discuss the next
step with ECGD and with the consortium (without of course
revealing any additional knowledge of the Hong Kong Government's
position). He will emphasise to them as his own judgement:-
Cop The importance of sending their decision takers
6.
(a)
(b)
to the next round of talks in Hong Kong on 19 March,
not waiting until the end of the month as suggested
by Mr Aston;
The evident need to get as close to a fixed price
offer as possible;
(c) Bearing in mind the fact that the Hong Kong
Government are still undecided as between a
consortium and a multi-contract approach, the need
to re-emphasise the non-financial advantages of a
single contract, particularly in management and
control;
(a)
The need to reassure
the Hong Kong Government that
the acceptance of a single contract will not lead
to any delay in starting work indeed the reverse.
All these are commercial arguments and do not provide us
with any opening for formal representations at the political
level. But we must acknowledge the Governor's letter. I
would not normally suggest that we should comment to him on
commercial affairs. But the contract is so important, and the
moment of decision so close that I believe in this case some
informal comments would be justified. I submit a draft letter
from Sir Duncan Watson accordingly.
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CONFIDENTIAL
/7.