CONFIDENTIAL
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MDHIAN 7684
QUESTION OF WORK SHARE IN THE CONSORTIUM. THUS FAR WE HAVE SUPPORTED THE FIRM LINE THAT IT WOULD BE UNACCEPTABLE IF THE UK HAD LESS THAN 50 PERCENT OF THIS WORK. BENJAMIN RE-ITERATES THAT THIS IS WHOLLY UNACCEPTABLE TO THE JAPANESE, WHILST ALLUDING TO ALTERNATIVE FIGURES WHICH WOULD CERTAINLY BE
UNACCEPTABLE TO US. WE HAVE TOLD MANZIE THAT WE CONSIDER THERE MUST BE SOME FLEXIBILITY HERE, BUT THAT AT SOME UNSPECIFIED POINT THE POSITION WOULD CLEARLY BE UNTENABLE. FOR YOUR INFORMATION WE WOULD REGARD A UK SHARE OF 40 PERCENT AS POSSIBLY REASONABLE WHILST A SHARE OF LESS THAN 30 PERCENT WOULD BE PRETTY UNACCEPTABLE. IF WE WERE TO GO BELOW 40 PERCENT, WE WOULD CLEARLY WANT TO BE AS CLOSE TO 40 PERCENT AS POSSIBLE. THIS APPLIES TOO TO WORK WITHIN THE AJC.
5. WE ARE INCLINED TO THINK THAT WE MUST SHORTLY RETURN TO THE DIFFICULT QUESTION OF ECGD COVER. IT WILL NOT BE EASY TO
DELIVER THE SORT OF EARLY IN-PRINCIPLE AGREEMENT THAT ALLEN
AND OTHERS ARE LOOKING FOR, BUT WE CLEARLY NEED TO CLARIFY THE UK POSITION AS EARLY AS POSSIBLE IF UK FIRMS ARE NOT TO BE
DISADVANTAGED. WE WILL KEEP YOU IN TOUCH WITH THE DEBATE.
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MR ADAMS, PEP DTI
MR ROGERS, PEP 1 DTI
HKD
FED
ERD
MR GALLAHER, PEP 1 DTI MR PENTECOST, ECGD
JOINT DIRECTORATE
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CONFIDENTIAL