WHICH HAS BEEN SENT TELEX TO GEC. MAIN POINTS ARE:
A) FURTHER NEGOTIATIONS WILL BE WITH ALL FOUR CONSORTIA. (B) FINAL CONTRACT PRICE, INCLUDING EXCALATION AND OTHER VARIATIONS, MUST BE BELOW DOLLARS 5,000 MILLION CIRCUMSCRIBED BY SUITABLE
ONDITIONS OF CONTRACT WITH CONTRACTOR ASSUMING RESPONSIBILITY AND LIABILITY FOR SUCCESSFUL COMPLETION,
C) BRITISHI GROUP PROPOSALS FALL SHORT OF REQUIREMENTS IN FOLLOWING RESECTS.
(1) COST SCALATION NEEDS CLEAR DEFINITION AND MUST BE LIMITED TO PRE-AGREED MAXIMUM,
(2) SHOULD BE NO UNFORSEEN CIRCUMSTANCES CLAUSE OR IT SHOULD BE LIMITED.
3) MUST BE A CEILING PRICE NOT TO BE EXCEEDED IN ANY CIRCUMST- ANCES. AND BELOW DOLLARS 5,000 MILLION,
4) CONSORTIUM TO TAKE OVER DESIGN RESPONSIBILITY WHEN BASIC DATA AND DESIGN PARAMETERS SETTLED,
D) GROUP ARE ASKED TO SAY SE 23 AUGUST WHETHER THEY WOULD BE PREP- PARED TO NEGOTIATE ON THIS BASIS,
E) PROPOSE TO HOLD DISCUSSIONS WITH BRITISH GROUP IN LONDON ON 30 AND 31 AUGUST.
3. ANNEX TO LETTER GIVES OUTLINE TIMETABLE FOR NEGOTIATIONS, IT ENVISAGES DECIDING BY END SEPTEMBER WITH WHICH CONSORTIA TO HOLD ACTUAL NEGOTIATIONS. FROM THEN UNTIL MARCH 74 CONSORTIA WOULD RECEIVE DASIC DATA AND SPECIFICATIONS TO SUBMIT DESIGN PROPOSALS TO CLIENT PROGRESSIVELY BETWEEN DECEMBER AND MAY 74. AGREEMENT IN PRINCIPLE ON DESIGN PROPOSALS TO BE REACHED EARLY JUNE
74 AND CONSORTIA PRICES ASSESSED, LETTER OF INTENT TO BE ISSUED TO FINALLY CHOSEN CONSORTIUM IN JULY AND COMPLETION OF CONTRACT AND COMMENCEMENT OF CONSTRUCTION IN OCTOBER 1974.
WE HAVE HEARD CONFIDENTIALLY THAT THE ITALIANS AND FRANCO- GERMANS ARE DEING INVITED TO LONDON IN THE FIRST FIVE DAYS OF SEPTEMBER. TALKS WITH JAPANESE WILL BE IN TOKYO MID-SEPTEMBER.
55
THA
HAVE SIMILARY LEARNED THAT WHEN ALL FACTORS TAKEN INTO CONSID- ERATION THERE WAS LITTLE TO CHOOSE BETWEEN THE CONSORTIA AT THIS STAGE.
FCO PASS COPY TO FELL (ECOD)
ASTON
SENT AT 18522/01 EJM
No comments yet.
Private notes are available after approval.