CONFIDENTIAL

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As regards the "people mover" and aviation fuel storage/distribution licence contracts,

are now asking the PAA for up-to-date scope, cost details and programme slippage implications. You will appreciate this will have to be done carefully so as not to start any "hares running". The data we get from the PAA will enable us to consider if there is a "non-franchise" option.

I will write to you again when we have the information we need and have had a chance to consider, with my colleagues in the Government Secretariat, franchise issues in more detail.

Yours sincerely,

Gordon fin

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