PURPOSE
USPOSE OF NEGOTIATIONS
HADDON CAVE DESCRIBES THIS AS THE FIRST ROUND OF NEGOTIATIONS PREVIOUS CONSULTATIONS HAVE BEEN EXPLORATORY AND NOT NEGOTIATIONS.
AD OBJECTIVE IS TO PRESS PACKAGE CONSORTIA TO REFINE THEIR PREVIOUS PROPOSALS SO AS TO ENABLE THE STEERING GROUP TO DECIDE FIRST WHETHER TO GO FOR A CONSORTIA APPROACH OR A MULTI-CONTRACT APPROACH (ON THIS SEE FURTHER SELOW)
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HE REPEATED WARNING HE HAD GIVEN BEFORE THAT HE INTENDS TO DO SOME HARD BARGAINING WITH THE CONSORTIA BOTH TO ESTABLISH WHETHER TO USE THAT APPROACH AND WHICH CONGORTIA TO CHOOSE. BUT ADMITS THAT HE HAS NOT YET CLEARED HIS MIND ON THE SORT OF QUESTIONS THAT HE WILL WISH TO ASK. ONE OF THE PURPOSES OF FURTHER MEETINGS OF THE STEERING GTOUP WOULD BE TO DRAW UP A CHECK LIST, HE PROMISED THAT HE WOULD LET ME KNOW WHAT IS ON THE CHECK LIST FOR THE UK AS SOON AS IT IS COMPILED BUT THIS MAY NOT BE UNTIL VERY CLOSE TO THE DATE.
HE STARTS THESE NEGOTIATIONS FROM POSITION THAT HONG KONG SIDE ARE STILL WORRIED ABOUT THE CONSORTIUM APPROACH BECAUSE, AS HE PUT IT, IT PUTS THEM AT THE MERCY OF THE CHOSEN CONSORTIUM, EVEN IF THE CONSORTIUM DECIDED TO INCREASE THE PRICES THERE WOULD BE RO GOING BACK AND NO OPPORTUNITY TO SWITCH TO SOMEONE ELSE.
HE DID NOT ACCEPT THE ARGUMENT THAT THEY WOULD BE ALMOST AS MUCH AT THE MERCY OF A MULTITUDE OF SEPARATE CONTRACTORS ANY ONE OF WHOM COULD BRING WORK TO A HALT: AS HE SEES IT IN THOSE CIRCUMSTANCES THEY WOULD MERELY ELIMINATE THAT CONTRACTOR AND NECOTIATE WITH SOMEOB ELSE TO TAKE OVER HIS WORK. THEY ARE CONVINCED THAT THE CONSORTI WILL BE MORE EXPENSIVE THAN THE CONTRACT APPROACH, BUT RECOGNISES THAT IT WILL BE SIMPLER TO MANAGE AND AVOID ORGANISATIONAL PROBLEMS. IT IS NORTH PAYING SOME PRICE FOR THIS BUT THERE ARE LIMITS CONSEQUENTLY THEIR PREFERENCE TO THE PRICE THEY ARE PREPARED TO PAY.
IS TO GO FOR CONSORTIUM PROVIDED THAT IT IS WITHIN THEIR PARAMETERS (WHICH HE DID NOT DEFINE AND I SUSPECT HAVE NOT YET BEEN FULLY DRAWN) IF THIS CONDITION IS NOT MET THEN THEY WILL REVERT TO THE MULTI CONTRACT APPROACH AND HE STRESSED AGAIN THAT THIS IS NOT ENTIRELY RULED OUT.
REQUIREMENTS
PRICE THE POINT OF THE WORDING IN (D) OF MY EXCED
7 IS THAT BRITISH CONSORTIUM PRESENT PROPOSALS LO NOT OFFER PROS- PECT OF FIRM PRICE UNTIL AFTER ARCUT 13 MONTHS. HONG KONG WANT TO HAVE A FIRM PRICE SOONER THAN THAT. FURTHERMORE HADLON-CAVE INTER- PRETS THE PRESENT TERMS AS THE EQUIVALENT OF COST PLUS** WHICH IS
HOT ACCEPTABLE,
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