COPY.
TEL. CREDA 27 TO DTI 20/3/73.
M.T.S.
FOR GLAVES-SMITH (OPG) FROM ASTON.
TALKS WITH STEERING GROUP CONCLUDED THIS AFTERNOON WITH AGREEMENT THAT:
(A) HONG KONG AUTHORITIES AND CONSULTANTS (THROUGH THEIR OFFICES
IN HONG KONG AND LONDON) WILL SUPPLY BRITISH GROUP WITH DETAILS OF THE ASSUMPTIONS ON WHICH 1972 ESTIMATE WAS BASED: THE TECHNICAL INFORMATION ON WHICH THE ASSUMPTIONS WERE MADE AND TECHNICAL INFORMATION SUBSEQUENTLY OBTAINED E.G. BY BORE HOLE TESTS: AND CHANGES IN THE TECHNICAL SPECIFICATIONS. (B) ON BASIS OF THIS INFORMATION BRITISH GROUP WILL AIM TO PROVIDE
BEFORE 30 APRIL. AN ESTIMATE OF THE LIKELY PRICE STATING ASSUMPTIONS ON WHICH IT IS BASED AND FACTORS LIKELY TO AFFECT
2.
IT.
(C) THERE WILL THEN BE FURTHER DISCUSSIONS ON 30 APRIL.
HADDON CAVE STRESSSED THAT PRESENT PURPOSE IS
A) TO DECIDE WHETHER A PACKAGE DEAL IS FEASIBLE
PARAMETERS OF ESTIMATED CASH FLOW.
WITHIN THE
(B) TO BE ASSURED THAT ARRANGEMENTS FOR ARRIVING AT THE FINAL
PRICE WILL ENSURE THAT HONG KONG HAS A FAIR DEAL.
(C) TO DECIDE WHICH CONSORTIA ARE WORTH PROCEEDING WITH IN DETAILED
NEGOTIATIONS IF CONSORTIA APPROACH IS DECIDED ON.
3.
AS REGARDS (C) HE MADE CLEAR THAT THE STEERING GROUP WILL NOT REPEAT NOT MAKE A FINAL SELECTION OF THE CONSORTIUM AT THIS STAGE UNLESS ALL BUT ONE DROP OUT (E.G. BECAUSE THEY CANNOT MEET PRICING REQUIREMENT WITHIN TIMETABLE) OR ONE IS SO CLEARLY THE BEST THAT FURTHER CONSIDERATION IS UNNECESSARY. HIS PERSONAL ESTIMATE IS THAT LATTER IS UNLIKELY BUT THAT FRANCO-GERMAN AND ITALIANS MAY FALL BY THE WAY.
4. HE GAVE FIRM UNDERTAKING THAT IF THERE WAS LIKELIHOOD OF OUR BEING KNOCKED OUT AT THIS STAGE WE WOULD BE FOREWARNED.
5.
PROGRAMME FOR THE OTHER THREE IS ITALIANS ON 22 MAROA, JAPAN- ESE 26 MARCH, FRANCO-GERMANS 29 MARCH.
6.
JAPANESE ARE UNDERSTOOD NOT TO BE READY FOR SUBSTANTIVE TALKS AND MEETING ON 26TH IS MAINLY A FORMALITY AND TO ENSURE THEY UNDERSTAND WHAT IS REQUIRED. THEY ARE ALREADY BOOKED FOR A SECOND ROUND ON 23 APRIL. 1.E. BRITISH GROUP LOOKS LIKE BEING LAST IN ON THE NEXT LEG AND HAVE GAINED MAXIMUM TIME FOR CONSIDERATION OF PRICE.
7. THERE IS STILL A HESITANCY IN THE GROUP ABOUT QUOTING ANY FIGURE SO SOON, AND THERE IS A LOT OF WORK AHEAD BEFORE 30 APRIL BUT STEERING GROUP ARE CLEARLY WELL SATISFIED AT OUTCOME OF THIS ROUND AFTER A STICKY START AND ARE BEING MORE FORTHCOMING THAN AT FIRST SEEMED LIKELY - SO FAR SO GOOD.
R. FELL. WHO ATTENDED FIRST SESSION YESTERDAY AND WILL HAVE ORAL REPORT ON THE SECOND TODAY WILL BE ABLE TO FILL ON DETAILS ON RETURN ON THURSDAY 22ND MARCH.
F C O PLEASE PASS COPIES TO MISS WELCH (CRE2) AND ECGD FOR COTTERILL
ASTON
NNNN
SENT AT 10583 /20 EJH
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