PRIORITY
CYPHER/CAT A
GPS WO
FM HONG KONG 080855Z
RESTRICTED
RESTRICTED
IN
128
-1
R
TOP LOPT
1~ICK 21/4
TO PRIORITY E.C.G.D. TELNO EXCED 30 OF 8 JUNE, 1973 AND TO DTI (FOR GLAVES-SMITH (OPG) AND FCO FOR STUART (HKIOD).
FOR COTTERILL FROM ASTON.
1. YOUR TRAVEL PLANS IN COGGIN'S EXCED 27 NOTED. YOU SHOULD HOWEVER
BE AWARE THAT CODD WHO IS HERE AT PRESENT AS CARRIER OF THE BRITISH
GROUPS PROPOSAL WILL ON RETURN EARLY NEXT WEEK RECOMMEND THAT BRITISH GROUP ASSEMBLE IN HONG KONG ON 25/26 JUNE IN TIME TO OVERCOME JET LAG AND BE ABLE TO DEVOTE WHOLE OF 27 JUNE TO GROUP
DISCUSSIONS.
2. REASONS FOR THIS RECOMMENDATION, AGREED BY LEVER, WEEDON AND MYSELF ARE :-
A)
3.
B)
BRITISH PROPOSAL WILL NEED MOST CAREFUL PRESENTATION IN VIEW
OF THE SHARP INCREASE IN COSTS COMPARED WITH THE CONSULTANTS
ESTIMATE
IT IS ALSO BEING RECOMMENDED THAT THERE SHOULD BE A LEADER OF
THE BRITISH GROUP TO CONDUCT THE DISCUSSIONS WITH SUPPORT FROM TECHNICIANS AS NECESSARY (CODD WILL ELABORATE ON LOGIC OF THIS
BUT FELL WILL BE AWARE OF THE NEED FROM PREVIOUSL EXPER- IENCE AND SUBSEQUENT CORRESPONDENCE). THE LEADER WILL NEED UP
DATED BRIEFING IN LIGHT OF LOCAL DEVELOPMENTS.
POINT ABOUT (A) IS THAT WE NEED TO TAKE ACCOUNT OF ALL WE CAN
DISCOVER UP TO LAST MINUTE ABOUT WHAT COMPETITIROS HAVE PROPOSED AND,
IF THIS SEEMS LESS THAN BRITISH PRICE, PREPARE ARGUMENTS TO SHOW
THAT THEIR BIDS ARE NOT REALISTIC OR NOT SUCH GOOD VALUE FOR
MONEY. IT IT SEEMS COMPETITORS ARE IN SAME BRACKET IT WILL BE
NECESSARY TO RUB HOME THE POINT THAT FRAGMENTED CONTRACT BIDS
WOULD ADD UP TO AS MUCH. THIS WONT BE EASY TO SELL SINCE, AS TALKS
WITH WILKINS TODAY INDICATED, THE INSTINCT IS STILL STRONG THAT
COMPETITIVE BIDDING WOULD PRODUCE LOWER PRICES EVEN FROM THE FIRMS
RESTRICTED
/MIO
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