4
11.
The Board was unable, however, to agree on a recommendation to award the tender to Imperial Chemical Industries Ltd. because :
12.
(a) the quality of this firm's products, as shown
in tests so far, was not as good as the quality of Du Pont (Hong Kong) Ltd.'s products; the prices of this firm's products would likely be higher than those of Du Pont
(b)
(Hong Kong) Ltd.;
(c) disregarding the two aspects "Security" and
"political", Du Pont (Hong Kong) Ltd. had
the higher points.
The Board considered, therefore, that it could not come to a firm recommendation, as the final decision must depend upon the importance attached to the "Security" and "Political" aspects. Leaving aside these aspects, the Board considered that Du Pont (Hong Kong) Ltd.'s offer would at least initially provide local consumers with a superior product at cheaper prices. However, the Board noted that if the tender is awarded to Imperial Chemical Industries Ltd., Du Pont (Hong Kong) Ltd. would probably continue to import watergel explosives, thus providing some competition which might help in imposing a constraint. on prices. On the other hand, too successful competition from Du Pont (Hong Kong) Ltd. might render the Imperial Chemical Industries Ltd.'s project unviable.
Dated this 10 day of May 1978.
(H.Ching)
Chairman, Special Tender Board.
CONFIDENTIAL