CONFIDENTIAL
GRS
400
PRIORITY
37
RECEIVED IN
CYPHER CAT A
REGISTRY No.52
TOP
COPY
15 MAR:974
FM BTC HONGKONG 151000Z
CONFIDENTIAL
HKK 21/2
TO PRIORITY EXPORT CREDIT GUARANTEE DEPT TELEGRAM NUMBER EXCED 7
174
OF 15 MARCH INFO PRIORITY D OF T (FOR ROYCE, 0.F.P.) TOKYO (MCGHIE).
FOR COTTERILL FROM ASTON.
YOUR EXCED 7 : M.T.S.
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REF
WHEEDON HAS GIVEN ME CONFIDENTIAL ORAL ACCOUNT OF HIS TALKS WITH MITI AND, SEPARATELY, THE JAPANESE CONSORTIUM, HE WILL BE SENDING FULL REPORT BACK TO STANHOPE GATE ON 18 MARCH BY HAND OF WRIGHT (DIRECTOR OF EXPORTS, G.E.C. POWER ENGINEERING) WHO TOOK
PART IN TALKS.
2. FIRST IMPRESSION IS THAT THERE IS A GOOD PROSPECT OF GETTING PART OF THE ELECTRICAL AND MECHANICAL POSSIBLY ON SUB-CONTRACT BASIS, BUT
(A) JAPANESE DO NOT REPEAT NOT WANT ITALIANS TO BE INCLUDED: (B) THEY WISH THE APPROACH TO APPEAR TO HAVE BEEN MADE ON G.E.C.'S INITIATIVE. THE TALKS WERE CONDUCTED ON A CHARADE BASIS AS IF G.E.C. WERE THE APPLICANT:
(C) THEY HAVE NOT YET REVEALED WHAT THEY MIGHT BE PREPARED TO ALLOT AND ON WHAT TERMS. G.E.C. ARE ASKED TO SAY WHAT THEY
WOULD LIKE TO DO AND AT WHAT PRICE:
(D) THEY HAVE NOT TOLD JARDINES AND ARE VERY ANXIOUS THAT AT THIS STAGE IT SHOULD BE KEPT HIGHLY CONFIDENTIAL.
3. IT LOOKS TO BE LARGELY A MIXTURE OF FACE SAVING AND BURDEN (OR BLAME) SHARING. THEY APPEAR TO BE IN REAL DIFFICULTY OVER PRICE AND MAY WANT TO INTRODUCE A NEW ELEMENT TO JUSTIFY MODIFICATION OF ORIGINAL LETTER OF INTENT TERMS. BUT THERE MAY WELL BE ENOUGH EXPORTS PROSPECT IN IT TO JUSTIFY G.E.C. TAKING SERIOUS LOOK AT IT, WITH DUE CAUTION ON THE FALL GUY'' RISK.
A WEEDON IS NOT
CONFIDENTIAL
*