CONFIDENTIAL
4. THERE WAS SOME REFERENCE TO THE RECENT TROUBLES OF THE DC19
AND WE EXPRESSED SURPRISE THAT CATHAY HAD NOT SO FAR SOUGHT FROM. MACDONNELL DOUGLAS GUARANTEES OF THE TYPE THAT LOCKHEEDS ARE NOW
OFFERING. WE TOLD THEM THAT THE ONLY LOGICAL CONCLUSION WE
COULD DRAW FROM THIS WAS THAT PROVIDED THE LOCKHEED GUARANTEES
ARE ADEQUATE THEY WILL NOW DECIDE IN FAVOUR OF THE TRI STAR. THEY DID NOT ACCEPT THAT THIS NECESSARILY FOLLOWED: BUT IT
DOES SEEM THAT THINGS ARE NOW MOVING MORE FAVOURABLY. WE SHALL BE GRATEFUL FOR ANY FURTHER STRAWS IN THE WIND THAT MAY HAVE
COME YOUR WAY.
5. ADRIAN SWIRE ASKED WHETHER IT WOULD BE POSSIBLE FOR US TO LET SWIRES HAVE A LETTER PUTTING ON RECORD THE SUBSTANCE OF WHAT WE HAD TOLD THEM IN THE COURSE OF OUR CONVERSATIONS- NOTABLY REGARDING THE IMPORTANCE OF CPA'S DECISION FROM THE NATIONAL POINT OF VIEW AND OUR ANXIETY THAT THEY SHOULD LEAN IN FAVOUR OF THE TRISTAR IN VIEW OF THE FACT THAT IT INCORPORATED POLLS-ROYCE ENCINES. WE SAID THAT WE COULD SEE DIFFICULTIES ABOUT THIS
PROPOSAL WHICH WOULD TEND TO OVER-FORMALISE THE SITUATION AND COULD LEAD TO AN EXTREMELY AWKWARD SITUATION IF IN THE EVENT THE CATHAY BOARD WERE TO OPT FOR THE DC19. AN ALTERNATIVE SUGGESTION WHICH ADRIAN SWIRE PUT FORWARD WAS THAT WE MIGHT LET THEM HAVE OUR OWN RECORD OF THE MEETING ON 27 FEBRUARY. IT WAS AGREED THAT BOTH * THEY AND WE WOULD CONSIDER THESE IDEAS FURTHER, CAN YOU THROW ANY LIGHT ON THE REASON FOR THIS PROPOSAL ? ARE THERE REAL DOUBTS
IN THE MINDS OF THE CATHAY BOARD MEMBERS IN HONG KONG REGARDING THE POSITION AS WE SEE IT OR ARE BREMRIDGE AND BLUCK LOOKING FOR A CONVENIENT WAY OF PERSUADING THEIR FELLOWS TO REVERSE THEIR PREVIOUS DECISION ?
6, SWIRES HAVE UNDERTAKEN TO GET IN TOUCH WITH US AGAIN ON
MONDAY AFTERNOON OR TUESDAY. GRATEFUL FOR ANY FURTHER NEWS YOU CAN LET US HAVE BEFORE THEN, ESPECIALLY REGARDING PRECISE TERMS OF LOCKHEED GUARANTEE AND LIKELIHOOD OF DECISION BEING POSTPONED
BEYOND 18 MARCH,
CALLAGHAN
FILES
HKIOD
STD
M & TD
TRED
ADDITIONAL DISTRIBUTION
ROLLS ROYCE
COPIES TO:
SIR PETER THORNTON)
MR YOUDE
MR MARSHALL
SIR R JACKLING
MR HUBBACK
MR D LE B JONES
MR WARRINGTON
MR ROGERS CA2
MR STEPHENSON CA2 MISS WELCH CRE 1
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DT!
R