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1574.
MDHIA 5426.
THEY NOR OTHER MAJOR COMPANIES NORMALLY EXPOSE THEMSELVES FOR
HUNDREDS OF MILLIONS OF POUNDS WITHOUT SOME FIRM GUARANTEE. HE ASKED WHETHER THERE WAS ANY PROSPECT OF A FURTHER GUARANTEE FROM THE UK GOVERNMENT, OVER AND ABOVE ECGD SUPPORT, TO COVER THE REST OF THEIR EXPENDITURE.
4.
MYERS WAS UNCERTAIN ABOUT WHETHER THE GROUP WOULD BE ABLE TO PUT IN A FIRM FINANCIAL PACKAGE ALONG WITH THEIR BID, ALTHOUGH THEY WOULD CERTAINLY BE RESPONDING TO THE FINANCIAL PROPOSALS. HE DOUBTED WHETHER ANY OF THE OTHER THREE BIDDING GROUPS WOULD PUT
IN FIRM FINANCIAL PACKAGES EITHER.
5. MYERS SAID THE THIRD MAIN AREA OF DIFFICULTY FOR THEM WAS
THE POSITION OF MITSUI. HE DID NOT TRUST THEM. THEY WERE NOT CONTRIBUTING MUCH TO THE GROUP YET ARE CAUSING THEM GREAT DIFFICULTIES. THE TRAFALGAR HOUSE BID HAD UNIQUE TECHNOLOGY TO OFFER IN THE BRIDGE CONSTRUCTION. THEY HAD NOT BEEN PREPARED TO SHARE THIS WITH MITSUI, SINCE THEY FEARED MITSUI MIGHT PASS DETAILS TO THE ALL-JAPANESE GROUP BIDDING AGAINST THEM. THEY ALSO THOUGHT THAT MITSUI, IN DISCUSSIONS OVER THE COMING WEEK, WERE LIKELY TO WANT THEM TO PUT AN EVEN HIGHER PRICE ON THEIR BID THAN THEY MIGHT BE INCLINED TO PUT IN THEMSELVES, AND THAT COULD BE THEIR WAY OF SUPPORTING THE ALL-JAPANESE BID. THEY WERE THEREFORE CONSIDERING DROPPING MITSUI FROM THE G GROUP THIS COMING WEEK, DEPENDING ON MITSUI'S ATTITUDE. THIS WOULD BE A HOSTAGE TO FORTUNE SINCE THE HK ADMINISTRATION'S RULES REQUIRE THAT PRE- QUALIFIED GROUPS SHOULD REMAIN AS PRE-QUALIFIED AND THAT ANY CHANGES IN THE COMPOSITION OF THE GROUP RISKS DISQUALIFICATION. HE SUGGESTED HE WOULD WELCOME THE BRITISH GOVERNMENT'S HELP TO ENSURE THAT THEY WOULD NOT BE DISQUALIFIED EVEN IF THEY DROP MITSUI. HE ADDED THAT ALMOST ALL THEIR EXPERTISE CAME FROM WITHIN THE TRAFALGAR HOUSE GROUP OF COMPANIES: COSTAIN ADDED VERY LITTLE TO THE BRIDGE TENDER AND MITSUI ALMOST NOTHING. THEY HAD HOPED THAT MITSUI WOULD CONTRIBUTE TO THE FINANCE, BUT THEIR WILLINGNESS OR ABILITY TO DO THIS WAS NOT LESS CERTAIN.
6. AFTER AN INITIAL MEETING WITH MYSELF, THESE POINTS WERE ALL PUT TO LORD CAITHNESS, WITH TIBBER AND RICKETTS PRESENT. LORD CAITHNESS TOLD MYERS THAT THERE WAS NO PROSPECT OF ANY GUARANTEES (AS SOUGHT IN PARA 3 ABOVE) FROM HMG OVER THE ABOVE THE ECGD SUPPORT WHICH WE WERE NOW HAPPY TO HAVE OBTAINED IN PRINCIPLE. HE NOTED WHAT MYERS HAD SAID ABOUT THE DIFFICULTIES OF PUTTING TOGETHER A SUPPORTING FINANCIAL PACKAGE: MUCH WOULD DEPEND HERE ON WHAT THE OTHER GROUPS DID. HE WELCOMED MYERS' REASSURANCE THAT
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