373
V
CỌ BTC HONG KONG
+
274
HKK 164 11:12.51 164/1
Y
Hr Lung
=
$
INDEX
PA
teren
GR 300
DESKBY 200100Z
CYPHER CAT A
FM DOT 19135OZ
CONFIDENTIAL
DESKBY 200100Z
NO DISTRIBUTION
X2
HKO ED
TRED
Z
TO IMMEDIATE BTC HONG KONG TEL NO INDUS 263 OF 19 OCTOBER FOR THORNTON FROM KESTEN
PARA 2 OF YOUR INDUS 161 REFERS. DOCUMENT REQUESTED WAS DESPATCHED FROM HERE THIS MORNING. FCO ADVISE IT WILL REACH HK IN TUESDAY'S BAG.
2. TEXT OF K AND D LETTER OF 17 AUGUST TO LIPPITT FOLLOWS: QUOTE HONG KONG POWER PROJECT STAGE 11
HAVING MADE INDEPENDENT ESTIMATES OF QUANTITIES AND PRICES AND RECONCILED THESE WITH THE RELEVANT COMPONENTS OF THE BALFOUR BEATTY BID FOR THE ABOVE PROJECT, KENNEDY AND DONKIN IS ABLE TO STATE THAT THE FOLLOWING COMPARISONS APPLY:
1.
BALFOUR BEATTY BID ITEMS FOR:
OVERHEAD TRANSMISSION LINE, SUPERTENSION CABLES, 400KV SWITCHGEAR, TRANSFORMERS AND REACTORACCORDING TO THE PROJECT SPECIFCATIONS. POUNDS STERLING 108.6 MILLION
**
2. ESTIMATED COMPETITIVE BID FROM WEST EUROPEAN CONTRACTORS
FOR THE SAME ITEMS. POUNDS STERLING 98.3 MILLION THE COMPETITIVE BID PRICE (2) HAS BEEN COMPILED ON THE BASIS OF OUR BEST ESTIMATES OF MARKET PRICES CURRENTLY PREVAILING. THE ACCURACY OF THESE ESTIMATES MAY BE EXPECTED TO BE WITHIN PLUS/MINUS 10 PER CENT OF PRICES WHICH WOULD BE OBTAINED IF THE ITEMS WERE TO BE SEPARATELY TENDERED BY REPUTABLE WEST EUROPEAN
CONTRACTORS.
A PRICE LOWER THAN THE WEST EUROPEAN LEVEL WOULD BE EXPECTED FROM JAPANESE TENDERERS FOR THE SPECIAL REASONS PERTAINING TO THAT COUNTRY'S TRADING POLICY.
AT THE MEETING HELD IN YOUR OFFICE ON 16TH AUGUST, 1978 IT WAS STATED:
(I) BY BEIL THAT THE VALUE OF THE CEGB SERVICES TO BE PROVIDED WITHIN THE PACKAGE IS CONSERVATIVELY ESTIMATED AT POUNDS STERLING
5 MILLION
(11) BY LAZARDS/ECGD THAT THE VALUE OF THE FINANCIAL ELEMENT OF THE PACKAGE, AS COMPARED TO THE CREDIT TERMS AVAILABLE FOR A MULTI CONTRACT PROJECT PURCHASED ON THE LOWEST-COST WORLD-WIDE BASIS, IS OF THE ORDER OF POUNDS STERLING 6 MILLION.
TAKING ALL THE ABOVE INFORMATION INTO ACCOUNT IT IS CONSIDERED THAT THE TOTAL BRITISH BID WOULD BE COMPETITIVE WITH NON-JAPANESE BIDS FOR THE PROJECT. YOURS SINCERELY, M.N. JOHN UNQUOTE
3. WIVES ADVISED YOUR ARRIVAL
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