い
PAGE FOUR
12. TERMS. WE CAN EXPECT TO BE PRESSED FOR BOTH A REDUCTION
OF INTEREST RATE AND TO FIRM UP CAPITAL ISATION OF INTEREST.
AS PREVIOUSLY REPORTED WE HAVE HAD A NUMBER OF SEPARATE
INDICATIONS THAT LATTER IS EXPECTED ALMOST WITHOUT FURTHER
ASK ING. WE KNOW FROM OUR CONTACTS AND YOURS THAT JAPANESE
ALREADY HAVE OFFERED IT, BUT HAVE YET BEEN UNABLE TO GET
ANY FURTHER INDICATION HERE OF THE PRECISE TERMS.
11.
WE HAVE NOW HEARD, FROM TWO
PACKAGE OR FRAGMENTATION.
SEPARATE AND NORMALLY RELIABLE SOURCES THAT QUOTE GOVERNMENT'S
UNQUOTE PREFERENCE IS FOR A PACKAGE DEAL AND THAT THEY WILL
ONLY GO FOR FRAGMENTATION IF THE PACKAGE PROPOSALS PROVED TOTALLY
UNACCEPTABLE AND IN PARTICULAR DID NOT MEET THE REQUIREMENTS
AS TO PRICE. THIS IS A SLIGHT IMPROVEMENT OVER THE PREVIOUS
UNCERTAINTY. ACCORDING TO THESE SOURCES THE SHORT LIST NOW
CONSISTS OF THE FOLLOWING FOUR PROPOSERS ONLY: U.K., ITALY, FRANCO/GERMAN AND JAPANESE. ALL OF THESE ARE PACKAGE PROPOSALS. THERE APPEARS TO BE NO PRESENT INTENTION AT THIS STAGE TO
NEGOTIATE FURTHER WITH THE FINANCIAL CONSORTIA. BUT THE
POSSIBILITY OF RETURNING TO THEM IS CERTAINLY NOT RULED OUT -
SEE PARAGRAPHS 3 AND 4 OF MY ESBOT 47.
12. COMPETITION. - THE KADOORIE GROUP PROJECT MANAGEMENT
PROPOSAL SEEMS NOW TO BE ELIMINATED SINCE IT DEPENDED ON
HAVING OPERATING FRANCHISE (SEE PARAGRAPH 5 OF ESBOT 47).
/WE HAVE