PRIORITY
TYPUER/CAT A
FM HONG KONG 0297157
CONFIDENTIAL
CONFIDENTIAL
1022
NKK 21/4
TO PRIORITY F C O TELNO 247 OF 2ND MARCH, 1973..
FOR GLAVES-SMITH, OVERSEAS FINANCE AND PROJECTS DIVISION, DTI FROM
HADDON-CAVE.
46
(45)
YOUR TELEGRAM NUMBER 215: MASS TRANSIT RAILWAY,
PA
2
6/5
I AM SURPRISED THAT THE BRITISH GROUP SHOULD HAVE GOT THE IMPRESSION THAT WE EXPECT THEM TO QUOTE A FIRM OR MEAR-FIRM PRICE FOR STAGES 1 TO 4 IN THE MARCH/APRIL DISCUSSIONS. NEITHER 1, NOR ANY OTHER MEMBER OF THE STEERING GROUP, HAS SAID ANYTHING WHICH COULD HAVE GIVEN THIS IMPRESSION, OBVIOUSLY, WE WOULD HOPE TO BE ABLE TO OBTAIN FAIRLY FIRM INDICATIONS (REPEAT INDICATIONS) OF WHAT THE PRICE IS LIKELY TO BE, EXPRESSED EITHER IN TERMS
OF A POSSIBLE PRICE RANGE, OR IN RELATION TO A SERIES OF ASSUMPTIONS OR ON SOME OTHER SUCH FORMULA. BUT WE DO NOT EXPECT A FIRM
COMMITMENT,
2. THE OBSERVATION IN YOUR PARAGRAPH 3 IS QUITE CORRECT. THE IMPRES- SION WE GOT FROM THE NOVEMBER TALKS IN LONDON WAS THAT IT WOULD BE ANOTHER 12 TO 18 MONTHS BEFORE THE BRITISH GROUP WOULD BE ABLE TO QUOTE PRICES, AND IT LOOKED AT THAT STAGE THAT OUR TARGET DATE OF JANUARY 1974 FOR THE COMMENCEMENT OF CONSTRUCTION MIGHT BE DELAYED BY 12 MONTHS OR SO IF WE CHOSE A SINGLE-CONTRACT APPROACH. VE ARE OF COURSE, ANXIOUS TO SEE CONSTRUCTION STARTING AS SOON AS POSSIBLE (THOUGH TARGET DATE COULD BE PUSHED FORWARD IF THE PERIOD OF CONSTRUCTION UNDER A SINGLE CONTRACT APPROACH WAS SHORTER THAN UNDER A MULTI-CONTRACT APPROACH AND/OR IP THE TESHO OF AMY PARTICULAR CONSORTIUM'S OFFER LOOKED SUFFICIENTLY ATTRACTIVE TO
JUSTIFY SOME DELAY).
2. PUT APOTHER WAY, WHAT WE HAVE TO DECIDE AFTER THE FURTHER OONSULTATIONG IS WHETHER WE SHOULD ADOPT A SINGLE-CONTRACT APPPJ AON OR A RELTI-CONTRACT APPROACH, BUT, UNLESO ONE CURSORTIDA MERE TO HWE ESTABLISHED ITSELF AS DEING CLEARLY FAR SUPERIOR TO ALL OTHERS, WHICH TA ORLIKELY, NE WORD NOT BE CHOOSING ONE SUCCESSPUL
CONFIDENTIAL
/CCPORTIVA
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