TNAG-0422-FCO40-468-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 117

PAGE THREE

POINTS AT ISSUE.

7. PRICE. AS REPORTED IN PREVIOUS MESSAGES IT HAS BECOME

INCREASINGLY CLEAR THAT QUESTION OF PRICE FIRST RAISED IN

LONDON HAS BECOME DOMINANT. THEY WANT A FIRM PRICE AND TO BE

SURE THAT IT IS THE BEST PRICE. A DOMINANT, IF NOT UNANAM IOUS,

VIEW IN THE STEERING GROUP STILL BELIEVES THAT IF SINGLE

CONTRACT CONSORTIA CANNOT PROVIDE A PRICE IT COULD BE ARRIVED

AT BY TENDER. SOME MEMBERS OF THE GROUP REALISE THE

DIFFICULTIES OF THIS AND THAT IT MAY TAKE A YEAR OR MORE TO

PRODUCE SUFFICIENT SPECIFICATIONS AND GET TENDERS FOR A FIRM

PRICE.

8. THIS IS PROBABLY WHY (B) IN THE FINANCIAL SECRETARY'S

LETTER IS WRITTEN AS CAUTIOUSLY AS IT IS. BUT THERE IS NO

DOUBT THAT ANY CONSORTIUM OFFERING WHAT LOOKS LIKE A FIRM PRICE,

OR EVEN EAPLY PROSPECT OF IT WILL BE IN A STRONG POSITION

OVER THE REST. CONVERSELY IF WE,

CONVERSELY IF WE, OR ANY OTHER CONSORTIUM,

DECLINE TO GO FURTHER THAN WE HAVE ALREADY OUR CHANCES WILL

BE CONSIDERABLY REDUCED. THE VAGUER WE ARE ON PRICE THE MORE

WE SHALL HAVE TO GIVE ON TERMS.

9. WE HAVE REASON TO BELIEVE THAT NONE OF THE OTHER CONSORTIA

HAVE ATTEMPTED TO GIVE A PRICE ALTHOUGH THE JAPANESE HAVE

INDICATED THAT THEY MIGHT BE ABLE TO IN THE NEAR FUTURE, GIVEN

A LITTLE MORE INFORMATION.

/10.