14/1
2162126 SCHI DO
GOHQ B LON
TO ECGD
MR. FELL
SRL 1267
9/23
232
thin Gertentl
COPY TO EID LONDON MR. M KOBAYASHI
1269
REFERRING TO YOUR TLX DATED 26 SEPTEMBER, I AM VERY SORRY NOT
TO WRITE EARIER,
1. WF ARE INFORMED THAT THE 3RD ROUND OF NEGOCIATIONS HELD ON 13 AND 14 GOTOBER WAS FOCUSSED ON THE H.K. REQUIREMENTS OF 43 ITEMS.
DISAGREEMENT SEEKS TO EXIST ON SEVERAL POINTS INCLUDING L/G. THROUGHOUT THE NEGOCIATIONS AND AFTER, THE JAPANESE CONSORTIUM MAKES HO BASIC CHANGES WITH ITS OFFER AND CONTINUES ITS TECHNICAL TALKS TO FIND HOW IT COULD RESPOND TO 11.K. REQUIRE- MENT AS TO THE CEILING PRICE OF THE PROJECT.
2. THOUGH OUR BASIC ATTITUDE REMAINS UNCHANGED TOWARDS THE
COLLABORATION BETWEEN OUR TWO COUNTRIES, WE HAVE YET NO FIRM IDEA ON HOW IT COULD BE WORKED OUT, SINCE IT IS DIFFICULT TO DRAW A PICTURE OF THE JOINT PROGRAM AT THIS STAGE. IT SHOULD CONTINUE TO BE STUDIED BY BOTH SIDES.
3. HOWEVER, THE FOLLOWING POINTS SHOULD BE CLEARED AT LEAST
IN ORDER TO HAVE A STEP FORWARD TOWARD A WORKABLE TIE-UP
(1) WHETHER OR TO WHAT EXTENT H.K. REQUEST FOR A FIXED PRICE CONTRACT COULD BE MET BY UK CONSORTIUM.
(2) WHETHER ANY SUBSTANTIAL DELAY IN THE SCHEDULE. ESPECIALLY OF STARTING THE WORK, MIGHT NOT RESULT FROM READJUSTMENT TO FIXED PRICES ON U.K. SIDE
(3) WHETHER ANY ADVERSE REACTION ON THE PART OF H.K. TO SUCH A JOINT APPROACH COULD POSSIBLLY BE AVOIDED OR RECTIFIED.
4. JAPANESE CONSORTIUM, WHICH CONSISTS OF SOME 70 FIRMS, IS
HEADED BY MITSUBISHI CORPORATION (WHOSE LONDON OFFICE IS NOT KEPT INFORMED OF THIS BUSINESS AT ALL).
BUT! WOULD SUGGEST INITIAL CONTACT BE MADE TO MR. NEWBEGIN, VICE-CHAIRMAN OF JARDIN-MADISON CO.
5. IN OUR VIEW ITALIAN GROUP SEEMS VERY COMPETING AND STRONG.
1 SHOULD BE GRATEFUL FOR ANY INFORMATION AS WELL AS YOU VIEWS ON IT.
FROM EID MITI
5. OZU
4 OCT. '73
FCCDHA R LON