ms deaths area wala
HOFO 023/02
F
DO I
GR 320
UNCLASSIFIED
COMMERCIAL IN CONFIDENCE
FM BTC HONG KONG #20719Z FEB 2
TO PRIORITY DO I
69
NO DISTRIBUTION
TELEGRAM NUMBER INDUS 25 OF 2 FEBRUARY
FOR HAVELOCK, MEED
YOUR INDUS 19. CLEVELAND BRIDGE
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WP.
HK Salon Felior
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CRAWFORD WATT ACCOMPANIED BY FRANK DINSDALE, MANAGING DIRECTOR
OF CLEVELAND BRIDGE AND ENGINEERING CO LTD CALLED THIS MORNING BY
APPOINTTMENT. I SUBSEQUENTLY ACCOMPANIED THEM ON A CALL ON BILL
STONES AT CLP. ROSS SMITH, PROJECT DIRECTOR OF CASTLE PEAK B STATION, WAS ALSO PRESENT.
2. DINSDALE AND WATT OUTLINED THE PROBLEM CAUSED BY THE PROJECTED.
TAKEOVER AND ENQUIRED WHETHER CLP WOULD ACCEPT A JOINT VENTURE BID
WHICH WOULD STAND EVEN IF THE TAKEOVER PROVED ABORTIVE.
3. STONES RECALLED THAT CLEVELAND BRIDGE AND RDL. HAD PREQUALIFIED SEPARATELY FOR THE STRUCTURAL STEELWORK CONTRACT AT CASTLE PEAK B
TENDERS FOR WHICH CLOSED ON 4 MARCH. A JOINT VENTURE WOULD NEED
A REQUALIFICATION. HE FEARED IT WAS UNATTRACTIVE BECAUSE
AMALGAMATION COULD RESULT IN UNACCEPTABLE MANAGEMENT INTERFACE
PROBLEMS WHICH MIGHT CAUSE DELAYS IN WHAT WAS ALREADY A TIGHT
PROGRAMME. AT THE SAME TIME HE RECOGNISED THAT IT WOULD BE ABSURD
FOR CLEVELAND AND RDL TO PUT IN SEPARATE BIDS WHEN THE FORMER
HAD FULL KNOWLEDGE OF THE PRICES OF ROL.
4. SUPPORTED BY ROSS SMITH HE THEREFORE SUGGESTED THAT THE BEST WAY FORWARD WAS FOR ONE OR OTHER OF THE PARTIES TO WITHDRAW. IF CLEVELAND BRIDGE SUBSEQUENTLY WISHED TO SUB-CONTRACT SOME OF THE WORK TO FORMER RDL FACTORIES THIS COULD BE DISCUSSED UNDER THE SUB-CONTRACT CONDITIONS FOR TENDERING. ROSS SMITH COMMENTED THAT THE WITHDRAWAL OF ONE OP OTHER OF CLEVELAND OR RDL MIGHT REQUIRE THE CLP ECARD TO INVITE A FURTHER TENDERER IN ORDER TO ACHIEVE
AN ACCEPTABLE MINIMUM OF BIDS.