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XCS(73)12
C
D
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The Consortium quoted a maximum lumpsum price of Yen
255, 600 million (approximately HK$4,998 million based on the prevailing rate of exchange on 1st October 1973), this bid being open up to 15th November 1973 (in accordance with the timing set out in the supplementary procedure). The Consortium gave an assurance that this price would not be exceeded except for reasons of "force majeure" (to be defined in the contract) and for variations în design unilaterally ordered by the client.
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After acknowledging receipt of the pre-emptive bid, the Steering "Group held several meetings with accredited representatives of the
Consortium with a view to establishing whether or not the bid conformed with the Government's requirements. Eventually, the Steering Group validated this bid on 18th October 1973, even though the Consortium's Insistence on a Hong Kong Government guarantee in respect of the finance which the Consortium would arrange directly conflicted with requirement V(g) in the Government's list of requirements, namely, that such a guarantee must not be required for export credits/consortium finance. In arriving at the decision to validate this bid, the Steering Group categorically told the Consortium that it was not persuaded that the Government's position on the question of a guarantee should be modified in any way.
The Steering Group also informed the Consortium that, bearing in mind the Group's position vis-a-vis the other three interested consortia, it would be necessary to inform them that the validation of the pre-emptive bid was based on an overall assessment and without prejudice to the question of a guarantee being given in respect of export credits/ consortium finance, Furthermore, in view of the implications which such a guarantee might have on other factors (particularly financial factors) the Steering Group concluded that a reasonable amount of extra time must be given to the other consortia to enable them to re-assess their own positions and decide on the form and content of any counter-bids which they might wish to put forward, Accordingly, the notification period under Step 3(b) of the supplementary procedure for dealing with a pre- emptive bid was extended from 30 to 45 days.
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A copy of the letter issued to the Japanese Consortium validating their bid is at Annex C; and a copy of the letter issued to each of the other three consortia informing them of the receipt of a valid bid and the implementation of the supplementary procedure, as amended, is at Annex D.
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When the Japanese Consortium acknowledged receipt of the letter at Annex C, they notified the Steering Group that the expiry date of their pre-emptive bid would be extended to 11th December 1973.
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