(d)
Product Price
"Tenderers are invited, on an optional basis, to provide detailed information on operating costs, based on mid-1977 prices, giving a firm indication of the anticipated product price; and to provide a defined basis that can be used for future pricing of the product in Hong Kong. Tenderers are also invited to state on an optional basis whether they are prepared to enter into a contractual obligation to abide by it."
Du Pont is cognizant of the current water gel explosives market prices in Hong Kong and that such prices have been established in a free competitive marketplace.
It is our understanding that after local manufacture is established on Stonecutters Island, importation of water gel explosives will still be an option for Hong Kong customers. We agree with this policy. Such a policy will place demands on the successful tenderer to maintain a profitable but reasonable price structure.
Du Pont's worldwide pricing policy for explosives is based on three basic criteria, which are:
1.
2.
3.
Being competitive while maintaining a reasonable profit.
Complying with all appropriate legal guidelines.
Maintaining the highest degree of ethical conduct.
We propose to use these same three criteria for our corporate conduct in Hong Kong.
Since the invitation to provide detailed operating costs, based on mid-1977 prices, giving a firm indication of anticipated product price, and to provide a defined basis for future pricing of the product in Hong Kong is optional; we elect not to enter into any such agreement.
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