THE.DESIGN STAGE AND IT WILL BE MID-1990 BEFORE THE SUPPLIER BEGINS TO RECEIVE APPRECIABLE PAYMENTS. TRANSMARK ESTIMATES
HAD PROVIDED FOR A 15 PERCENT INFLATION OVER DURATION OF THE BUILD THUS REFLECTING THE JAPANESE INFLATION RATE RATHER THAN THAT
OF THE UK.
4.
SAMUELS ALSO TOLD ME THAT THE JAPANESE BID (C. ITOH AND CO) IS EVEN BELOW THE SUCCESSFUL METCAM BID FOR STAGE 1 OF THE MTR WHICH NOT ONLY PROVIDED FOR PRICE ESCALATION BUT WAS MADE OVER TWO YEARS AGO. THIS SUGGESTS THAT THE JAPANESE OFFER IS A DETERMINED ATTEMPT TO BUY THE PROJECT IN ORDER TO BE IN A POSITION TO SECURE THE PARALLEL MODERNISATION WORK ON THE CHINESE SIDE OF THE BORDER AND AN INVALUABLE FOOTHOLD IN THE AWAKENING CHINESE
MARKET FOR RAILWAY EQUIPMENT.
5. SAMUELS REVEALED THAT TRANSMARK ARE LOOKING CAREFULLY AT THE
EUROPEAN BID (CONFIRMED AS THE 50 CYCLE GROUP) BECAUSE THEY HAVE BECOME AWARE OF A POSSIBILITY THAT THE STOCK COULD, BE TOO HEAVY FOR THE KCR REQUIREMENTS. NO DOUBT GARDINER OF METCAM IS FUELLING THESE DOUBTS IN THE UK. ON THE OTHER HAND THE C. ITOH BID APPEARS TO BE IN FULL ACCORDANCE WITH THE TECHNICAL SPECIFICATIONS ALTHOUGH TRANSMARK ARE CHECKING ON RUMOURS THAT THE JAPANESE FIRM
HAVE A REPUTATION FOR NOT FOLLOWING THROUGH THE STRICT TERMS
ONCE THE CONTRACT HAS BEEN AWARDED.
6.
ACCORDING TO SAMUELS, TRANSMARK ARE REQUIRED TO PRESENT AN UPDATED PROGRAMME FOR THE PROJECT TO THE HONG KONG GOVERNMENT FINANCE COMMITTEE ON 29 NOVEMBER IN ORDER TO GET THE SCHEME RE-AFF LRMED ON THE BASIS OF UPWARD REVISED ESTIMATES. HE WOULD THEN EXPECT THE TENDER BOARD TO TAKE A FINAL DECISION IN EARLY - DECEMBER. HE SAYS THAT AT PRESENT NOTHING HAS BEEN SAID TO ANY OF THE FOUR FINAL BIDDERS EVEN THOUGH THE HAWKER SIDDELEY/BRUSH ELECTRICAL BID (IN ASSOCIATION WITH CANADIAN COACHBUILDERS)
HAS VIRTUALLY BEEN RULED OUT BECAUSE IT IS NOT TECHNICALLY COMPLIANT
· AND THERE ARE TOO MANY QUALIFICATIONS.
7. I THINK WE MUST REGARD SAMUELS' INFORMATION AS SUPPLEMENTARY.
THE KEY QUESTION REMAINS WHETHER WE CAN BRING DOWN THE METCAM PRICE TO A FIGURE WHICH WOULD HELP EITHER OF OPTIONS 2 OR 3 DESCRIBED
-IN TELNO CREDA 327.
MARCH
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