DO B + C HONG KONG
GRS520
DESKBY 060100Z
CYPHER CAT A
FROM DEPT OF INDUSTRY 051841Z
CONFIDENTIAL
DESKBY 0601002
Hakllarlt
126110
HK+92 TRED
TO IMMEDIATE BTC HONG KONG TELNO INDUS 233 OF 5 OCTOBER, 1978.
FOR THORNTON FROM KESTEN.
TRANSMISSION SYSTEM.
WE MET TODAY WITH DEWE MATTHEWS TO DISCUSS HOW THE WIRES GOT CROSSED LAST WEEK. HE HAS UNDERTAKEN TO SEE GEMMILL UPON ARRIVAL AND I HOPE HE APPRECIATES THAT WE ARE ALL ON THE SAME
SIDE.
2. HE EXPLAINED THAT HE HAD ATTEMPTED TO FIND OUT WHAT ECGD WOULD ACCEPT AS A FALL-BACK POSITION BUT WITHOUT SUCCESS. HE HAD THEREFORE WRITTEN WITH BENJAMIN'S AGREEMENT TO CLP IN THE TERMS YOU KNOW.
3. FOR YOUR PRIVATE INFORMATION WE ARE IN DIFFICULTY BECAUSE BENJAMIN TOOK LINE THAT HMG IN GENERAL WOULD NOT GIVE A FALLBACK POSITION. THIS CAUSED ECGD TO TAKE SAME LINE. BENJAMIN IS NOT NOW IN UK AND HAVELOCK HAS NOT SPOKEN TO HIM BUT HE INTENDS TO DISREGARD BENJAMIN'S ADVICE. WE WITH DEWE MATTHEWS AND ROBERTS ARE SEEING STEVENS (WHO HAS REPLACED KEMP) AT EGGD TOMORROW UNDER THE GUISE OF BRIEFING DEWE MATTHEWS BUT WITH THE INTENTION OF TRYING TO SECURE AN IDEA OF THEIR FALL-BACK.
4. IN DISCUSSIONS WITH PARTICIPANTS IN LAST WEEK'S VISIT A NUMBER OF POINTS WERE MADE.
DOWN PAYMENT.
5. BALFOURS (HOBSON) HOPE TO MEET 5 PER CENT AS LONG AS (A) PROGRESS PAYMENTS CAN BE INCREASED TO GEC LEVELS AND (B) FINANCE CHARGES REMAIN OUTSIDE LOAN. ODELL MADE IT CLEAR THAT SUB-CONTRACTORS WILL GET ZERO DOWN-PAYMENT. HAVELOCK REPORTED THAT CLP MIGHT PAY EXTRA COSTS AS LONG AS THE CASH FLOWS MATCHED.
6. HOBSON HAS UNDERTAKEN TO RESOLVE THIS FOR LIPPITT'S MEETING ON THURSDAY IN THE EXPECTATION THAT BB CAN EXPECT NOTHING BETTER THAN GEC GOT.
BEI SERVICES.
7. COSTS WILL BE DISCUSSED HERE MONDAY 9.30 AM BUT CEGD ARE ALREADY INTERVIEWING AND RECASTING THEIR OFFER. THEY EXPECT TO GIVE CLP 90 PER CENT OF THEIR WANTS.
SYSTEM DESIGN RESPONSIBILITY
8. ODELL HAS SAID THAT IF CEGB GIVE THEM UNCONDITIONAL INDEMNITY FOR THEIR WORK BB WILL GIVE GUARANTEE TO CLP. THIS WAS ACCEPTED IN PRINCIPLE.
PRICES.
9. IT IS CLEAR THAT FIXED PART OF BID PRICE DID NOT INCLUDE AVERAGES OF ALL VARIABLE COSTS DESPITE ODELL HAVING SAID OTHERWISE BUT VARIABLES FOR LINE, TOWERS ETC WERE SPELLED OUT. ODELL HAS AGREED TO PRODUCE QUOTE STAGED UNQUOTE PRICE PROPOSALS FOR THURSDAY TAKING ACCOUNT OF ITEMS THAT NEED PROTECTION AND EFFECTS OF CASH FLOWS ON PAYMENT TERMS.
BID VALIDITY
10. HAVELOCK WARNED ODELL THAT HE SHOULD BE PREPARED IN NOVEMBER TO EXTEND VALIDITY TO END-DECEMBER IN CASE THIS PROVED NECESSARY.
TIMETABLE.
11. IT WAS AGREED THAT SUB-CONTRACTORS WOULD NEED TO BE REPRESENTED COMMERCIALLY AND POSSIBLY TECHNICALLY DURING THE NEXT VISIT.
GUARANTEES
12. ODELL IS WRITING TO MAJOR SUB-CONTRACTORS TO REQUIRE GUARANTEES OF 10 YEAR SPARE PARTS AVAILABLE FROM MAIN BOARDS. WE WILL KNOW ANY NON-GUARANTORS BY THURSDAY.
TRANSFORMERS
13. CEGB HAVE AGREED TO PROVIDE BB (FOR CLP) WITH SOME COMFORT STATEMENT ABOUT CEGB ATTITUDE TO AND USE OF FERRANT! TRANSFORMERS.
HOTELS
14. WE HAVE ASKED EVERYONE TO SETTLE NAMES OF DELEGATES AND
IF THEY NEED HOTEL HELP TO LET US KNOW ASAP. ONLY YATES AND WEAVING HAVE YET ASKED. PLEASE IF POSSIBLE ARRANGE ROOMS FOR THEM AS PER HAVELOCK FOR OCTOBER.
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