5.
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THE CEGB SETS BY INTERNATIONAL STANDARDS VERY ARDUOUS SPECIFICATIONS (AND APPLICATION PHILOSOPHY) FOR SF6 SWITCHGEAR.
GEC AND NEI'S EQUIPMENT IS FUNDAMENTALLY DESIGNED TO MEET THAT SPECIFICATION. THIS MAKES THEM MUCH LESS COMPETITIVE FOR EXPORT ORDERS WHERE LOWER (GENERALLY INTERNATIONAL ELECTROTECHNICAL, COMMISSION (IEC)) SPECIFICATIONS ARE ACCEPTED. THERE IS ONLY A LIMITED DEGREE TO WHICH THEY CAN SAVE COST BY DERATING, WHILE THE COST ADVANTAGES FOR THEIR COMPETITORS IN FUNDAMENTALLY DESIGNING FOR IEC ARE CONSIDERABLE.
6.
i.
INFLUENCED BY THE FACT THAT AS PART OF THE PACKAGE THEY HAD CEGB ADVISORS WORKING WITH THEM ON DRAWING UP THE SPECIFICATIONS, AND ALLEGEDLY ALSO TO HELP THE UK MANUFACTURERS, CLP ORIGINALLY SPECIFIED STANDARDS BASED CLOSELY ON CEGB PRACTICE, AND IT IS TO THESE GEC AND NEI BID. THOUGH A LITTLE LOWER THAN FULL CEGB, THE SPECIFICATIONS WERE WELL ABOVE JEG. HOWEVER, IT HAS BECOME ABUNDANTLY CLEAR THAT CLP ARE NOW PREPARED (DESPITE CEGB ADVICE BUT WITH SUPPORT FROM THEIR OWN CONSULTANT) TO ACCEPT IEC STANDARDS AS SUITABLE, AND THAT THE UNSOLICITED' BIDS CONTAIN SWITCHGEAR DESIGNED ONLY TO MEET IEC STANDARDS.
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7. THIS DECISION HAS RUINED THE CLAIMS OF THE UK SWITCHGEAR
MANUFACTURERS WHO (AS KENNEDY AND DONKIN HAVE UNDERLINED TO US HERE)
STAND NO HOPE OF COMPETING FOR THIS PARTICULAR DESCRIPTION OF EQUIPMENT IN THISAND OTHER WORLD MARKETS AGAINST IEC SPECIFICATIONS,
WITH DERIVATIVES OF CEGB-SPECIFICATION EQUIPMENT.
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8. YOU SHOULD NOTE THAT THIS ARGUMENT APPLIES ONLY TO METALCLAD
HIGH VOLTAGE SFY SWITCHGEAR. WE BELIEVE WE ARE COMPETITIVE INTERNATIONALLY FOR OPEN TERMINAL GEAR, WHICH OCCUPIES MORE SPACE AND IS THEREFORE INCREASINGLY UNATTRACTIVE WHEREAS IN HONG KONG SPACE IS AT A PREMIUM. THE CIRCUMSTANCES IN CHINA MAY WELL BE CONDUCIVE TO OPEN TERMINAL EQUIPMENT.
9. IN ADDITION THERE IS NO DOUBT THAT BBC AND OTHERS HAVE BEEN PREPARED TO TAKE THIS BUSINESS AT A CONSIDERABLE LOSS. EVEN ALLOWING FOR THE FACT THAT WE BELIEVE INADEQUACIES IN THE SCOPE OF SUPPLY OFFERED BY BBC AND OTHERS COULD ADD FIFTY PERCENT TO THE EVENTUAL PRICE PAID BY CLP, IT IS INDUBITABLE THAT THE DIFFERENCE REMAINS REMARKABLE.
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10. IN THESE CIRCUMSTANCES WE HAVE NOT BEEN ABLE TO MOVE CLP
SIGNIFICANTLY ON THEIR VIEW OF THE PRICE AT WHICH THEY COULD GET THE TOTAL PACKAGE. (£100 £126 MILLION). AFTER CONSIDERATION
OF ALL OUR ARGUMENTS ABOUT SCOPE OF SUPPLY, BEI SERVICES, ETC WITH WHICH WE BELLVED THEIF ESTIMATE OF A FAIR PRICE COULD