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of practical interpretation (and even
lities for trade-off).
some possibi-
(d) He had taken note of Lazards' comments
on the overall
financial picture, particularly those concerning the
various escalation factors assumed by the MTSG. The
choice of what escalation factors to use was a matter
of judgment which, at the end of the day, must be made
by the Government. However, the TSG was prepared to
look at Lazards' calculations.
the
(e) Finally, he said his comments were necessarily tenta-
tive at this stage, as the MTSG could only assess
British Group's response after it had obtained the
responses of the other three consortia. However, he
reiterated that the Government would be quite pre-
pared to abandon the project if the alternative were
to mean putting the Colony's fiscal position seriously
at risk.
MTSG's Summary of the British Group's Proposals
13. The two sides went over the MTSG's summary of the British
Group's proposals. The British Group confirmed that the summary
was substantially correct, subject to the following observations:
(a) the British Group had specified a number of special
requirements additional to those summarised in para-
graph 4;
(b) as regards paragraph 8, a number of other factors
apart from cost escalation and unforeseen circum-
stances had been excluded from the British Group's
price estimates;
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