OVIDED
3. SANSOME ALSO MADE THE POINT THAT THEIR CURRENT POSITION WOULD BE WORTH ABOUT 10 PER CENT IN PRICE TERMS COMPARED TO ANY COMPETITOR. THE QUESTION WE WILL HAVE TO EXPLORE IS WHETHER THAT THESE CONTRACTS CAN BE FINANCED IN HONG KONG DOLLARS) THIS WILL BE SUFFICIENT OR WHETHER OTHER GOVERNMENT ASSISTANCE WILL BE NECESSARY TO HELP REDUCE THE PRICE GAP.
4. THUS ON E AND M, OUR UNDERSTANDING IS THAT THERE IS STILL SOME PROSPECT FOR NEGOTIATED CONTRACTS FOR METCAM AND WESTINGHOUSE BUT NOT FOR OTHERS, SINCE INITIALLY THE MTRC ONLY REQUIRES TRAILER CARS, GEC TRACTION ARE NOT INVOLVED, AND, ACCORDING TO SANSOME, THOMPSON WILL DEFINITELY GO OUT TO TENDER FOR
THE OTHERS. I THINK HOWEVER, THAT THE LAZARDS FIGURES, GIVEN IN YOUR EXCED 8, ARE LOW FOR METCAM AND WESTINGHOUSE. OUR OWN ESTIMATE OF THESE IS ABOUT POUNDS STERLING 60M (METCAM) AND UP TO POUNDS STERLING 17M (WESTINGHOUSE).
5. THE SITUATION IS STILL LIKELY TO BE FLUID BY THE TIME OF MR PARKINSON'S VISIT, BUT HE WILL BE FULLY BRIEFED.
6. ON THE CONSTRUCTION FRONT THE SITUATION APPEARS TO US AS FOLLOWS. BOTH BALFOUR BEATTY (IN ASSOCIATION WITH MOWLEMS, AND NUTALLS) AND KIER (WITH GAMMON) INTEND TO PREQUALIFY FOR ALL THE TUNNELLING CONTRACTS. FOR YOUR OWN INFORMATION, THESE TWO GROUPS ARE TALKING TO EACH OTHER AND MAY AVOID GETTING IN EACH OTHERS' WAY.
7. JOHN LAING, CEMENTATION AND TAYLOR WOODROW HAVE ALL TOLD US THAT THEY INTEND TO PREQUALIFY FOR A VARIETY OF DIFFERENT ASPECTS OF THE GENERAL CONSTRUCTION WORK AND OTHERS SUCH AS TARMAC HAVE INDICATED THAT THEY ARE ACTIVELY CONSIDERING THEIR POSITION, SOME OF THESE, AND NO DOUBT OTHERS, WILL ALSO HAVE BEEN IN TOUCH WITH YOU DIRECT. THEY ARE ALL AWARE OF THE PREQUALIFYING DATE IS 15 MARCH.
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