HOFO 206/15
PP DO I
RR DO T
GR 630
MTR
CONFIDENTIAL
FM BTC HONG KONG 150421Z DEC Z
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DOT
Me Rayo
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173/1
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DAK OFFICER
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euni Tüken
No
Mr Lung
TELNO.INDUS 235 OF 15 DECEMBER,
AND TO ROUTINE D.O.T. (FOR ROYCE E.D.DIVISION).
FOR LIPPITT, DEPUTY SECRETARY.
MASS TRANSIT RAILWAYS. STAGE 2.
1. SANSOME HAS GIVEN ME THE FOLLOWING INFORMATION ABOUT HIS FORMAL MEETING YESTERDAY WITH NORMAN THOMPSON AND THE MTR ADJUDICATION COMMITTEE WHICH REPRESENTED HIS FINAL CHANCE TO ADJUST METCAM'S BID.
2.' SANSOME PRECEDED THE JAPANESE BUT WAS FOLLOWED BY THE
AUSTRALIANS. AT THE OUTSET THOMPSON MADE IT ABSOLUTELY CLEAR THAT AT 6 P.M LAST NIGHT ALL NEGOTIATIONS WERE FINISHED 1.E ONCE SANSOME'S FINAL BID WAS ON THE TABLE THERE WOULD
BE NO OPPORTUNITY FOR HIM OR OTHER COMPETITORS TO CHANGE THE PRICE.
3. AFTER VERY CAREFUL THOUGHT AND TAKING ACCOUNT OF SUCH
INTELLIGENCE WHICH WE AND GEMMILL HAD BEEN ABLE TO PROVIDE,
SANSOME DECIDED TO TABLE HIS WALK-AWAY PRICE. IN BROAD TERMS
THIS REPRESENTS A REDUCTION OF SEVENTEEN PERCENT ON THE PRICE
WHICH NEARLY CAUSED THE ELIMINATION OF METCAM AT THE END OF
SH) OCTOBER (MY CREDA 322 REFERS). THIS REQUIRED HIM TO USE ALL
THE £3.75 MILLION REMAINING FROM THE £5 MILLION WHICH HE TELLS
ME WAS MADE AVAILABLE FROM D.0.1 SOURCES, THE OTHER £1.25 MILLION
HAVING BEEN USED FOR THE KCR BID. SANSOME HAS ASKED ME TO
LET YOU KNOW THAT HE HAS MORE THAN MATCHED THIS CONTRIBUTION
FROM HIS OWN RESOURCES BUT HAS NOT REPEAT NOT YET SO INFORMED
GARDINER.
4. SANSOME'S WRITTEN FINAL OFFER WAS FORMALLY REGISTERED AND