CONFIDENTIAL
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DRAFT TELEGRAM
CHRISTIAN
FOR ASTON FROM ROYCE (OPG)
YOU SHOULD HAVE RECEIVED IN THE WEEKEND BAG THE DRAFT
OF A LETTER FOR CLAGUE AND THE ITALIAN CONSUL-GENERAL
TO DELIVER TO THE STEERING GROUP. UNLESS YOU SEE
OBJECTION, YOU SHOULD FOLLOW UP DELIVERY OF THE LETTER
AT THE MOMENT YOU DEEM APPROPRIATE, MAKING THE FOLLOWING
POINTS:-
a.
WHILE THE UK GOVERNMENT REGRET THAT THERE IS TO BE
NO ALL BRITISH BID THEY WELCOME THE FORMATION OF THE
ANGLO-ITALIAN GROUP, WHOSE RESOURCES, EXPERIENCE AND
PARTICULAR STRENGTHS IN THE DIFFERENT FIELDS COVERED BY
THE SCHEME ARE A WARRANT OF THE GROUP'S ABILITY TO WORK
TO THE HIGHEST STANDARDS.
b. THE COMBINED GROUP HAS NOT BEEN ABLE TO QUOTE A
PRICE BECAUSE SOME OF THE INFORMATION NEEDED TO ARRIVE
AT A DEFINITIVE FIGURE IS LACKING. BUT THEY HAVE MADE A
NUMBER OF ESTIMATES AND ARE CONVINCED THAT EVEN ON
PESSIMISTIC ASSUMPTIONS OF SUCH UNCERTAINTIES AS COST
ESCALATION THEIR PRICE WILL BE KEENLY COMPETITIVE WITH
THAT OF ANY OTHER BIDDER.
C. THE STEERING COMMITTEE HAS VALIDATED THE JAPANESE
GROUP'S BID DESPITE THAT GROUP'S INSISTENCE ON HAVING
A HONG KONG GOVERNMENT GUARANTEE AND IT IS TO BE HOPED
THAT THE COMMITTEE WILL BE AS FLEXIBLE IN ASSESSING
THE ANGLO-ITALIAN GROUP'S PROPOSALS AGAINST THE
COMMITTEE'S CRITERIA.
OTHER MORE POLITICAL POINTS MAY BE MADE DIRECTLY TO THE