HOFO#18/13
00 FCO
GPS 650
DEDIP
CYPHER/CAT A
HKK 24/4
FM HONG KONG 130650Z
NO DISTRIBUTION
DEDIP
R&F
2X8
242
CONFIDENTIAL
TO IMMEDIATE FCO TELNO 1175 OF 13 OCTOBER.
PERSONAL FOR MR ROYLE FROM GOVERNOR. (DISTRIBUTION ON HIS PRIVATE SECRETARY'S INSTRUCTIONS ONLY).
YOUR TELEGRAM 1925: MASS TRANSIT.
WE HAVE LENT VERY HARD ON THE JAPANESE OVER THEIR BID IN ORDER
TO GAIN TIME, BUT TIME IS NOW RUNNING OUT, THE EXPLANATIONS WE DEMANDED HAVE BEEN QUICKLY PROVIDED AND WE ARE IN NO DOUBT
THAT THE BID IS GOING TO PROVE VALID. ONLY TWO POINTS ARE NOW
OUTSTANDING AND THESE SHOULD BE DISPOSED OF EARLY NEXT WEEK.
2. THERE HAD TO BE A TIMETABLE, BECAUSE, NOT UNNATURALLY THE JAPANESE PUT A TIME LIMIT ON THEIR OFFER. THE TIMETABLE HAVING NOW BEEN
EXPLAINED TO ALL THE CONSORTIA THERE CAN BE NO QUESTION OF OUR
DEPARTING FROM IT.
3. IN THESE CIRCUMSTANCES, AND IN RESPONSE TO YOUR APPEAL, WE WILL SPIN THINGS OUT UNTIL FRIDAY 19 OCTOBER, 1.E. A FURTHER WEEK FROM YOUR TELEGRAM. BUT WE CANNOT STRETCH THINGS FURTHER. THIS GIVES THE
ANGLO-ITALIAN GROUP 36 DAYS FROM TODAY.
4.
APPRECIATE THAT IT IS AN ADDED DIFFICULTY IF A WEEK OF THIS HAS TO BE TAKEN UP BY THE EXPORT GROUP FOR THE CONSTRUCTION INDUSTRY MAKING UP ITS MIND. INDEED CANNOT UNDERSTAND WHY THE ANGLO/ITALIAN CONSORTIUM CANNOT DRAFT AND MAKE A BID ON THE ASSUMPTION THAT BETWEEN NOW AND THE TIME THAT ANY COMMITMENT IS ENTERED INTO THE 12 AND A HALF PER CENT HOLE CAN BE PLUGGED, BUT THAT IS THEIR AFFAIR.
5. WITH REGARD TO YOU PARA 2 YOU AT LEAST KNOW HOW MUCH MADDON- CAVE AND I HAVE DONE TO TRY AND GET THE BRITISH CONSORTIUM MOVING, AND IT IS NOT FAIR TO REPROACH US NOW FOR NOT GIVING THEM
ENOUGH TIME. INDEED WE MIGHT CLAIM TO HAVE DONE MORE THAN THE
B.T.I. - AND RISKED OUR NECKS IN THE PROCESS.
6. I AM A LITTLE CONCERNED AT YOUR REFERENCE TO MY ENCOURAGEMENT
OF THE ANGLO-ITALIAN GROUP, WITH THE IMPLICATION THAT I AM UNDER SOME OBLIGATION TO SEE THAT IT SUCCEEDS. I HAVE, IN FACT, METICULOUSLY REFRAINED FROM ANYTHING OF THE SORT. WHAT BOTH
HADDON-CAVE AND I DID WAS TO MAKE SURE THAT THE KEY PEOPLE IN LONDON KNEW THAT AS FROM THE LAST ROUND IN LONDON, 1.E. 6 SEPTEMBER, THE BRITISH CONSORTIUM WAS OUT, UNLESS THEY CHANGED THEIR POSITION
ON CIVIL ENGINEERING SIDE TO MEET OUR CONDITIONS. THOUGH THIS
PROMPTED SUGGESTIONS FROM KINDERSLEY AND ALDINGTON THAT THEY SHOULD
COMBINE WITH THE ITALIANS, WE ALWAYS INSISTED THAT IF THIS WAS THE DEDUCTION THE CONSORTIUM DREW, IT WAS ENTIRELY A MATTER FOR THEIR JUDGEMENT. NATURALLY WHAT CONCERNED US WAS THE TERMS OF ANY NEW BID
THAT RESULTED.
7. YOUR PARA 3. IF THERE IS NO COUNTER-BID FROM A COMPETITOR, AND IF THE EXECUTIVE COUNCIL AUTHORISES THE STEERING GROUP TO
NEGOTIATE ON THE BASIS OF THE JAPANESE BID, WE WILL NATURALLY LOOK VERY CLOSELY AT THE SMALL PRINT IN THE COURSE OF THE NEGOTIATIONS. THAT IS WHAT THE NEGOTIATIONS WILL BE FOR. IF THE SIGNALS YOU REFER TO ARE CORRECT, THE NEGOTIATIONS WILL COME UNSTUCK. THIS WOULD LEAVE THE WAY OPEN FOR COMPETITORS TO COME IN AGAIN, HOWEVER, I DO TRUST YOU WILL NOT ALLOW THE BRITISH CONSORTIUM OR THE DTI TO DELUDE THEMSELVES INTO MAKING THIS POSSIBILITY AN
ALIBI FOR NOT GOING ALL OUT TO PUT IN A COUNTER BID. THEIR INFORMATION ABOUT THE INTENTIONS OF THEIR COMPETITORS HAS BEEN CONSISTENTLY POOR, INSOFAR AS THEY HAVE TOLD IT TO ME, AND I WOULD NOT BE SURPRISED IF EITHER THEY ARE BEING FED MIS-INFORMATION, OR ALTERNATIVELY, FAINT HEARTS ON THE CIVIL ENGINEERING SIDE ARE PRESSING WISHFUL THINK INGUT
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B. IF ONLY WE COULD GET TO A POSITION IN WHICH BOTH JAPANESE AND ANGLO-ITALIAN BIDS HAD BEEN ACCEPTED AS VALID, VARIOUS NEW POSSIBILITEES WOULD OPEN UP TO SECURE A MEASURE OF BRITISH PARTICIPATION INCLUDING A LINK-UP WITH THE JAPANESE OR A DIVISION OF THE CONTRACT. BUT A PRE-REQUISITE IS A BRITISH OR ANGLO-ITALIAN BID BY 18 NOVEMBER WHICH IS PROVED AS VALID WITHIN THE FOLLOWING FORTNIGHT, BUT THERE COULD BE NO ROOM NOW FOR FIDDLING EITHER THESE DATES OR THE VALIDITY OF THE BID IF MADE.
MACLEHOSE
NNNN
SENT AT 13/07377 RD
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