TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 109

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hoped the MTSG would consider very carefully the alternative

approach they had suggested. lir. Haddon-Cave asked if he

could take this to mean that, if the Government amended its

requirements appropriately, the British Group would be

prepared to continue with the competitive negotiation exercise in accordance with the sequence set out in the annex to his letter of 1st August. Mr. Wiltshire generally confirmed this,

but reiterated that the cost of the exercise would need to be

appropriately dealt with. In response to further questions from Mr. Haddon-Cave, Mr. Newall said the civil engineering sub-group could not accept the ceiling price concept, and had difficulties with the $5,000 million figure in the context of

the system as now defined. Mr. Scott said that, as

as far as the

E & M sub-group was concerned, the difficulties were largely

with the requirements for pre-agreed limits on escalation and

unforeseen circumstances, both of which were related to the ceiling price concept.

10.

It was agreed that the meeting should be adjourned at this point, and resume at 9.30 a.m. on the following day.

Second Session, 31st August 1973, 9.30 a.m.

11.

Upon resumption of the previous day's discussions,

Mr. Wiltshire stated that:

(a) the British Group did not wish to withdraw from the

exercise, or even give any impression of withdrawing, at this stage;

(b) Lazards had done some calculations to show the effects

of a higher rate of escalation for MTR fares, and Mr. Kindersley would be tabling copies of these calcu- lations later on in the meeting; and

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