}
PAGE THREE.
6. THE PAPER DOES NOT APPEAR TO DISCUSS THE TERMS OFFERED BY ANY OF THE GROUPS IN ANY DETAIL (SFE PARAGRAPH 2 OF M.I.F.T.)
BUT SUGGESTS A SHORT LIST OF ABOUT HALF A DOZEN COVERING POTH
METHODS OF PROCEEDING WITH WHOM NEGOTIATIONS MIGHT CONTINUE.
7. IT APPEARS THAT THE COMMITTEE ARE STILL TRYING TO GET A
CONSTRUCTION PRICE BEFORE COMMITTING THEMSELVES. JONES MADE
THE POINT TO ME THAT IN THE END IT WILL BE NECESSARY TO LOOK
AT IT AS A TOTAL PACKAGE 1.E. THE PRICE COMBINED WITH THE
COST OF RAISING THE CAPITAL TO COVER IT. THE GOVERNOR APPEARS
TO BE UNDER THE IMPRESSION THAT A PRICE HAS BEEN ARRIVED AT BUT WE SUSPECT THAT HE IS REFERRING ONLY TO THE CONSULTANT'S
ORIGINAL ESTIMATE AND MAY NOT YET BE AWARE THAT THIS MAY NOT NECESSARILY BE THE PRICE AND THAT MUCH MORE WORK NEEDS TO BE
DOME TO GET A RELIABLE PRICE CALCULATION. JONES TOLD ME THAT IT IS RECOGNISED THAT PREPARATION OF A SUFFICIENTLY DETAILED SPECIFICATION ON WHICH TO BASE A PRICE FOR EVEN THE FIRST FOUR STAGES MIGHT TAKE ANOTHER NINE MONTHS. HADDON-CAVE TOLD LORD ALDINGTON THAT THEY HAD GONE A LONG WAY TOWARDS PRODUCING BASIS FOR A PRICE BUT HE AGREED THAT IT WAS STILL NOT FAR ENOUGH SEMICOLON NEVERTHELESS HE IS CLEARLY LOOK ING FOP A PRICE BEFORE HE COMMITS HIMSELF TO ANY CROUP. LORD ALDINGTON REMINDED HIM OF DIFFICULTIES AND WARNED THAT ANY
PRICE AT THIS STAGE MUST BE SUSPECT.
A. THE TIMETABLE WHICH THE GOVERNOR NOW APPEARS TO ENVISAGE IS THAT QUOTE NEGOTIATIONS UNQUOTE WILL BE COMPLETED IN TIME FOR SIGNATURE BY 1 JUNE. HIS REFERENCE TO QUOTE NEGOTIATIONS UNQUOTE DOES NOT, HOWEVER, NECESSARILY MEAN THAT IT HAS BEEN FORMALLY DECIDED THAT FINAL OUTCOME WILL BE BY A NEGOTIATED PACKAGE CONTRACT RATHER THAN BY TENDER. IN PRESENT CONTEXT NEGOTIATIONS PROBABLY MEANS THE CONTINUING ROUND OF DISCUSSIONS WITH THE SHORT LIST TO DECIDE WHICH METHOD TO ADOPT AND WHICH GROUP TO USE.
MIFT
SENT #4102/02 FER