3.

(A)

MY SOURCE SUGGESTS THAT THERE ARE ONLY THREE OPTIONS NOW OPEN THE GOVERNMENT:

TO ACCEPT THE EUROPEAN BID (THE JAPANESE OFFER SEEMS TO BE TOO LOW AND THERE ARE VALID DOUBTS ABOUT THE FURTHER APPRECIATION

OF THE YEN)',

(B) TO ARGUE THAT THE BRITISH BID IS POLITICALLY DESIRABLE (PARA

5 OF MY TELEGRAM UNDER REFERENCE) AND THAT THERE WILL BE A REDUCTION

IN PRICE AFTER THE TENDER AWARD,

(C) TO REOPEN TENDERING ON THE GROUNDS THAT THERE WERE TOO FEW

BIDS IN ACCORDANCE WITH THE SPECIFICATION.

4. FOR EITHER OPTION (B) OR (C) TO HAVE ANY CHANCE OF SWINGING THE CONTRACT BACK TO METCAM IT IS ESSENTIAL TO KNOW BY THE END

OF NEXT WEEK WHETHER THEY CAN REDUCE THEIR PRICE BY BETWEEN

POUNDS STERLING 5-8 MILLION IN ORDER TO MATCH AT LEAST THE

DIMENSIONS EUROPEAN BID. SANSOME IS AWARE OF THE DISCUSSIONS OF HIS PROBLEM

AND WILL NO DOUBT HAVE BRIEFED GARDNER.

5. IT IS VITAL THAT KNOWLEDGE OF THE CONTENTS OF THIS TELEGRAM

SHOULD BE RESTRICTED ON A STRICT NEED TO KNOW BASIS. I AM SURE

THAT YOU WILL UNDERSTAND THE DANGER HERE IN LOCAL POLITICAL TERMS IF IT BECAME KNOWN OR WAS EVEN SUSPECTED THAT I WAS PRIVY TO SUCH DETAILED KNOWLEDGE OF GOVERNMENT THINKING. BUT I BELEIVE

THAT THE IMPORTANCE OF THE ORDER FOR THE UK JUSTIFIES THE MAXIMUM EFFORT BY HMG TO TAKE ADVANTAGE OF THE OPPORTUNITY GIVEN TO US TO SAVE THE DAY.

6.

I SHOULD BE MOST GRATEFUL FOR AN EARLY INDICATION OF YOUR

CHANCES OF PROVIDING HELP. PLEASE ADDRESS TELEGRAM REPLIES PERSONAL TO ME WITH DEDIP CAVEAT. I PLAN TO SHOW THESE TELEGRAMS TO LIPPITT OF THE DOI WHO IS DUE HERE TOMORROW FOR TALKS ON THE CHINA LIGHT AND POWER TRANSMISSION PROJECT. IT MIGHT BE HELPFUL IF YOU WERE ABLE TO SPEAK TO HIM BEFORE HE LEAVES LONDON LATER

TODAY.

MARCH

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