(27 PA
Or
Goodfellow
HOFUM93/25
PP F C O
GRPS 51%
CYPHER/CAT A
FM HONG KONG 0508252
RESTRICTED
RECEIVED IN REGISTRY No. 51
12 MAR 1974
HKK 21/12.
com
✓
No Capas
Mr Clotates
"A/01. M/s Marring
202. Morind
I. Me Regeeroyan Shill Mie 3 Miss Hackey 32215. 44 MR Quart HKIC) FCO
62.
TO PRIORITY D T I TELNG CREDA 15 OF 5TH MARCH, 1974. INFO PRIORITY F.C.0. AND BCARFE HONG KONG,
FOR WARRINGTON (AIR DIVISION), ROGERS (US/CAZ) AND MISS LACKEY (CRE2) FCO (FOR STUART, HK TOD)
FROM ASTON.
MY CREDA 13.
C.P.A.
Wide Bodied Ads
LASI
RE
NEXT
21
RUT
JARDINES REPRESENTATIVE TODAY GAVE ME HIS ONE REMOVE'' UNDERSTANDING OF POSITION AT THIS END.
2.
-
TO MAKE PRICE MORE ATTRACTIVE LOCKHEED (WITH ROLLS ROYCE)
WORTH POUNDS 4 MILLION HAVE OFFERED TO GIVE CPA A SIMULATOR
IF THEY BUY 4 AIRCRAFT.
-
3.
MAKES
4.
THEY HAVE ALSO OFFERED A BUY BACK PRICE FOR VALIANTS WHICH
THEM MOST VALUABLE VALIANTS IN THE WORLD**.
PRICE PROPOSED FOR 466,ØØØLB AIRCRAFT IS CONCESSIONARY COMPARED WITH PRICE FOR STANDARD.
5. TO COUNTER ARGUMENT THAT DC 10 IS MORE ECONOMICAL ON FUEL, LOCKHEEDS HAVE PROPOSED AIRFRAME MODIFICATIONS THAT SHOULD IMPROVE TRISTAR FUEL CONSUMPTION AND HAVE OFFERED A GUARANTEE ON FUEL CONSUMPTION. THIS HAS HOWEVER TO BE SUBJECT TO GROUND RULES”” AE.G. HEIGHT, SPEEDS, PAY LOAD, WIND ETC. WHICH LOCKHEED EXPERT ARE CURRENTLY DISCUSSING WITH C.P.A. LOCKHEED CHIEF TEST PILOT IS DUE HERE AT END OF WEEK TO ROUND THIS OFF.
6.
SIMILARLY GUARANTEE IS BEING OFFERED ON MAINTENANCE COSTS AND LOCKHEED EXPERTS ARE DISCUSSING DETAILS WITH C.P.A. ON BASIS OF ACTUAL COSTS EXPERIENCED BY TRISTAR OPERATORS.
7.
ON VIABILITY KOCHIAN (NOW HERE) IS TRYING TO AGREE A FORMULA GUARANTEEING SUBJECT TO COMPENSATION THAT LOCKHEED WILL REMAIN IN BUSINESS AND PRODUCE TRISTARS (NOT COMMITTED TO STRETCHED VERSIONS) FOR 12 YEARS. HE ORIGINALLY OFFERED 5 BUT BLUCK ASKED FOR 1 AND FOR OTHER CHANGES WHICH ARE STILL BEING DISCUSSED WITH INTENT TO PUBLISH FINAL DRAFT BY 8TH MARCH. KOCHIAN IS SAID TO RE CONFIDENT IT CAN BE DONE.
8.
KUCHIAN IS MEETING BLUCK DAILY AND IMPRESSION IS THAT BLUCK IS RE-DISPOSED TO TRISTAR BUT HAVING ONCE BEEN PERSUADED AGAINST
HE IS THEREFORE DRIVING IT NEEDS A 'FACE SAVER' TO SUPPORT IT AGAIN. HARD BARGAINS. HE HAS, FOR EXAMPLE, SAID THAT HE DOES NOT THINK ROLLS ROYCE ARE OFFERING ENOUGHT ALTHOUGH IT HAS BEEN STRESSED TO HIM THAT ROLLS ARE CONTRIBUTING TO MUCH OF WHAT LOCKHEED ARE OFFERING. EXPECTATION IS THAT HE WILL ASK WILKINSON ON 7 MARCH FOR UNDERTAKING TO BUY BACK THE CURRENT ENGINES, OR PROVIDE CONVERSIONS TO 524 FREE OF CHARGE, IF CPA EVENTUALLY GO FOR FOR BIGGER VERSION.
9.
JARDINES ARE HOPING TO PERSUADE WILKINSON TO STAY OVER
8 MARCH TO PRESENT UNITED FRONT WITH KOCHEAN ON THIS.
10.
UNDERSTAND FULL C P A BOARD HAS BEEN CALLED FOR 15 MARCH BUT
NOT YET KNOWN WHO IS ATTENDING.
11.
ASTON
GOVERNOR AND BCARFE HAVE COPY OF THIS AND TEL UNDER REF.
NNNN
SENT AT 9062/5 EJH