fully
運そ
agree
سه
J
HE RECOGNISES THAT THE CONSORTIUM COULD NOT BE EXPECTED TO
GIVE A FIRM PRICE BY APRIL BUT HE WILL BY THEN WANT EITHER:~
(A) A PRICE SUBJECT TO CERTAIN ASSUMPTIONS. FOR EXAMPLE. IT COULD ASSUME THAT ALL THE TERRAIN VAS ROCK OR SOFT SOIL, HE
(B)
CLAIMS THAT CONSULTANTS HAVE NOW DOME ENOUGH WORK TO JUDGE
WHETHER A PRICE IS FAIR ON WHATEVER ASSUMPTIONS ARE STATED.
ALSO SAYS THAT THEY NOW HAVE AN IDEA OF WHAT THE PRICE
SHOULD BE AS A YARDSTICK IN JUDGING THE BIDS, OR
AN INDICATION OF THE PRICE RANGE WITH SOME GUARANTEE THAT
THE JOB WILL BE DONE WITHIN THAT RANGE.
HIS PREFERENCE STILL IS FOR A LUMP SUM CONTRACT, BUT RECOG-
NISES THIS IS PROBABLY UNACHIEVABLE,
HE EXPECTS THAT THERE WILL BE FIRM, PRECISE AND, SUBJECT PERHAPS TO CURRENCY ESCALATION, FAIRLY FIXED PRICES FOR EQUIPMENT.
CREDIT TERMS HE IS LOOKING FOR BOTH CAPITALISATION OF INTEREST
AÚD
A REDUCTION OF INTEREST RATE. HIS FRANKLY CONFESSED INTENTION IS TO SQUEEZE ALL FOUR PARTIES FOR AS FAVOURABLE TERMS AS POSSIBLE AND
TO PLAY IT AS,ROUGH AS NECESSARY TO ACHIEVE THIS, HE SEEMS CONFIDENT
STILL THAT DIFFERENCE BETWEEN TERMS AT PRESENT ON OFFER FOR
CONSORTIUM CONTRACTS AND THOSE LIKELY TO BE NEGOTIABLE FOR
MULTI CONTRACTS IS NOT SIGNIFICANT.
PERHAPS REALISATION OF CHANGING SITUATION MENTIONED TO
ME BY FELL WILL CAUSE HIM TO RETHINK THIS. BUT UNLESS AND UNTIL
HE IS THUS PERSUADED, THERE IS REAL RISK THAT IF HE DOES NOT SEE PROSPECT OF SOME IMPROVEMENT ON EXISTING TERMS THEN HE WILL CO FOR MULTI CONTRACT. (MORE ESPECIALLY IF HE IS ALSO UNHAPPY ABOUT PRICE)
COMPETITION
CONFIRMED THAT THERE ARE ONLY FOUR IN THE SHORT LIST
FOR THIS ROUND OF NEGOTIATIONS,
THE FRANCO-DERMANS AND THE ITALIANS ARE IN THE LIST NOT SO
MUCH BECAUSE OF WHAT THEY HAVE OFFERED SO FAR BUT BECAUSE OF WHAT
THEY HAVE THE POTENTIAL TO OFFER, HE ADMITTED THAT NEITHER HAS YET MADE A FINANCIAL OFFER (1 E CREDIT TERMS) BUT IS CONFIDENT THAT WITH
THE BACKING THEY ARE KNOWN TO HAVE THEY CAN MAKE A VERY ATTRACTIVE
ONE.
THE JAPANESE HAVING MADE A VERY BAD START** BY TRYING-
TO GO FOR A LOAN SOLUTION HAVE NOW ADOPTED A MUCH MORE
SENSIBLE** APPROACH, HE CONFIRMED THAT THEY HAVE OFFERED AN
INTEREST RATE APPROXIMATELY THE SAME AS IN OUR PROPOSAL BUT
DIFFERENTLY COMPOSED AND HAVE PROPOSED A LUMP SUM WHICH IS NOT
RELATED TO THE OFF SHORE ELEMENT. IN RESPONSE TO A DIRECT QUESTION
HE SAID THAT THEY HAVE HOT YET BEEN CLEAR ON THE QUESTION OF