TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 39

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CONFIDENTIAL

TO PRIORITY F C O TELNO 1115 OF 2ND OCTOBER, 1973.

STRICTLY PERSONAL FOR DENMAN (DTI) FROM HADDOW-CAVE.

MASS TRANSIT RAILWAY PROJECT.

3

AS I FORECAST WHEN WE SPOKE IN TOKYO, THE JAPANESE PUT IN A PRE-EMPTIVE BID LAST FRIDAY. IN ACCORDANCE WITH A PROCEDURE (WHICH WE HAVE AGREED WITH ALL CONSORTIA) FOR DEALING WITH SUCH A BID,

AND THE STEERING GROUP IS NOW EXAMINING WHETHER IT IS A VALID

BID IN TERMS OF OUR DESIDERATA. IF WE DECIDE THAT IT IS, WE SHALL

NOTIFY THE OTHER THREE CONSORTIA THAT WE HAVE RECEIVED A VALID BID.

THEREAFTER, IF NO OTHER CONSORTIUM PUTS IN A VALID BID WITHIN 30 DAYS, EXECUTIVE COUNCIL WILL BE CONSULTED AS TO WHETHER THE JAPANESE DID SHOULD BE ACCEPTED. ON THE OTHER HAND, IF ONE OR MORE OF THE OTHER CONSORTIA PUT IN A VALID BID OR BIDS, THEN WE

SHALL EITHER CONSULT EXECUTIVE COUNCIL AFTER ANOTHER 14 DAYS AS

TO WHICH BID TO ACCEPT OR DELAY OUR APPROACH TO EXECUTIVE COUNCIL UNTIL AFTER WE HAVE HELD COMPETITIVE NEGOTIATIONS WITH THE BILDERS.

2.

KINDERSLEY IS AWARE OF THE EXACT DETAILS OF THE PROCEDURE FOR DEALING WITH A PRE-EMPTIVE BID. I SUGGEST YOU LET HIM KNOW THAT THE JAPANESE HAVE PUT IN A BID, AND THAT WITHIN 10 DAYS OR SO WE MAY BE NOTIFYING THE BRITISH GROUP (AND THE OTHER TWO COMEDETTA) THAT WE HAVE RECEIVED A VALID BID.