PAGE THREE
POINTS AT ISSUE.
7. PRICE. AS REPORTED IN PREVIOUS MESSAGES IT HAS BECOME
INCREASINGLY CLEAR THAT QUESTION OF PRICE FIRST RAISED IN
LONDON HAS BECOME DOMINANT. THEY WANT A FIRM PRICE AND TO BE
SURE THAT IT IS THE BEST PRICE. A DOMINANT, IF NOT UNANAM IOUS,
VIEW IN THE STEERING GROUP STILL BELIEVES THAT IF SINGLE
CONTRACT CONSORTIA CANNOT PROVIDE A PRICE IT COULD BE ARRIVED
AT BY TENDER. SOME MEMBERS OF THE GROUP REALISE THE
DIFFICULTIES OF THIS AND THAT IT MAY TAKE A YEAR OR MORE TO
PRODUCE SUFFICIENT SPECIFICATIONS AND GET TENDERS FOR A FIRM
PRICE.
8. THIS IS PROBABLY WHY (B) IN THE FINANCIAL SECRETARY'S
LETTER IS WRITTEN AS CAUTIOUSLY AS IT IS. BUT THERE IS NO
DOUBT THAT ANY CONSORTIUM OFFERING WHAT LOOKS LIKE A FIRM PRICE,
OR EVEN EAPLY PROSPECT OF IT WILL BE IN A STRONG POSITION
OVER THE REST. CONVERSELY IF WE,
CONVERSELY IF WE, OR ANY OTHER CONSORTIUM,
DECLINE TO GO FURTHER THAN WE HAVE ALREADY OUR CHANCES WILL
BE CONSIDERABLY REDUCED. THE VAGUER WE ARE ON PRICE THE MORE
WE SHALL HAVE TO GIVE ON TERMS.
9. WE HAVE REASON TO BELIEVE THAT NONE OF THE OTHER CONSORTIA
HAVE ATTEMPTED TO GIVE A PRICE ALTHOUGH THE JAPANESE HAVE
INDICATED THAT THEY MIGHT BE ABLE TO IN THE NEAR FUTURE, GIVEN
A LITTLE MORE INFORMATION.
/10.