CYPHER CAT A
Cary
FM DTI 171332Z
Copy to POD (fer penugnuph 6) jilles
TO PRIORITY BTC HONG KONG TELNO CREDA
CONFIDENTIAL
REVIST
FOR MARCH FROM LIGHTMAN
YOUR CREDA 19 OF 16 JANUARY.
INDEX
No
19 JAN
PA
H.K.
Raq
OF /17 JANUARY
هل د
(4)
done!
Pl. copy to
ME. Frook
POD.
then back
welt
1. GARDINER OF THE LAIRD GROUR ACCOMPANIED BY SANSON CALLED ON PLIATZKY ON MONDAY 16 JANUARY. I WAS ALSPLAST PRESENT.
fite.
20
(27)
PREV FILE
2. GARDINER REPORTED THAT THOMPSON HAD SAID THAT THE MASS TRANSIT CORPORATION WERE PREPARED NOW TO EXERCISE THEIR OPTION FOR A FURTHER 70 (NOT REPEAT NOT 60 AS IN YOUR TUR) CARS BUT ONLY ON CONDITION THAT, BEFORE SIGNING THE CONTRACT, THEY SHOULD KNOW THE PRICE WHICH METRO-CAM WOULD BID FOR THE 150 CARS FOR STAGE 2. MASS TRANSIT'S THINKING CLEARLY WAS THAT, SINCE AN ORDER FOR 150 CARS WOULD BE LESS ATTRACTIVE TO OTHER SUPPLIERS, THEY COULD BE HELD TO RANSOM ON PRICE BY METRO-CAM FOR THE SECOND STAGE. MASS TRANSIT WERE ALSO SEEKING TO HAVE PRICE ESCALATION ARRANGEMENTS BASED ON HONG KONG RATHER THAN A UK INDEX AND FOR A GREATER DISCOUNT ON THE PRICE THAN THE 5 PER CENT THEY HAD BEEN GIVEN FOR STAGE 1.
3. METRO-CAM WERE THEREFORE SEEKING AN ASSURANCE NOW THAT THE COST ESCALATION INSURANCE SCHEME WOULD CONTINUE TO BE AVAILABLE IN NOVEMBER BY WHICH TIME THE CONTRACT FOR STAGE 2 CARS WOULD BE SIGNED AND, SECOND, THAT STERLING FINANCE ON THE SAME TERMS AS FOR STAGE 1 WOULD CONTINUE TO BE AVAILABLE.
4. TREASURY AGREEMENT HAS BEEN SOUGHT FOR A CONTINUATION OF THE COST ESCALATION SCHEME FOR A FURTHER 12 MONTHS. FOLLOWING THE MEETING WITH GARDINER PLIATZKY HAS WRITTEN TO THE TREASURY (COPY OF HIS LETTER FOLLOWS BY BAG) SUPPORTING CONTINUATION OF THE SCHEME AND QUOTING THIS CASE.
5. PLIATZKY ADVISED GARDINER THAT THEY SHOULD PURSUE FURTHER DISCUSSIONS ABOUT FINANCE AND COST ESCALATION WITH ECGD.
6. GARDINER SPOKE IN THE HIGHEST TERMS OF THE HELP THAT HE HAD RECEIVED FROM YOU IN HONG KONG.