CONFIDENTIAL
-9-
hoped the MTSG would consider very carefully the alternative approach they had suggested. Mr. Haddon-Cave asked if he
could take this to mean that, if the Government amended its
requirements appropriately, the British Group would be
prepared to continue with the competitive negotiation exercise
in accordance with the sequence set out in the annex to his
letter of 1st August. Mr. Wiltshire generally confirmed this,
but reiterated that the cost of the exercise would need to be
appropriately dealt with. In response to further questions
from Mr. Haddon-Cave, Mr. Newall said the civil engineering
sub-group could not accept the ceiling price concept, and had
difficulties with the $5,000 million figure in the context of
the system as now defined. Mr. Scott said that, as
as far as the
D & M sub-group was concerned, the difficulties were largely
with the requirements for pre-agreed limits on escalation and
unforeseen circumstances, both of which were related to the .
ceiling price concept.
10.
It was agreed that the aceting should be adjourned at
this point, and resume at 9.30 a.m. on the following day.
Second Session, 31st August 1973, 9.30 a.m。
11.
Upon resumption of the previous day's discussions,
Mr. Wiltshire stated that:
(a) the British Group did not wish to withdraw from the
exercise, or even give any impression of withdrawing, at this stage;
(b) Lazards had done some calculations to show the effects
of a higher rate of escalation for MTR fares, and Mr. Kindersley would be tabling copies of these calcu- lations later on in the meeting; and
CONFIDENTIAL
Conta/...