TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 65

CONFIDENTIAL

-10-

(c) the civil engineering sub-group wished to give

further explanations of the target form of

contract.

12.

He then

Mr. Haddon-Cave noted Mr. Wiltshire's comments.

made the following points in summarising, and commenting on,

the indications given by the British Group at the previous

session:

(a) He had taken note of the British Group's reservations

as regards the programming of work and as regards design responsibility. He proposed that discussion of these aspects might be held over until after the technical presentation scheduled for 4th September,

as it might be that the British Group had, at this

stage, a somewhat exaggerated view of the amount of

work involved.

(b) is regards the several inter-related pricing questions,

he presumed that the British Group were in no doubt as

to the MTSG's position, but would be prepared to give

further detailed explanations of the ceiling price

concept and the manner of its application if required.

1

(c) He had noted the qualitative differences between the

responses of the E & M and civil engineering sub-groups to these pricing questions. His understanding was

that, while the E & M sub-group had at least hinted at

the possibility of accepting the ceiling price concept

for the U.K. portion of the supplies involved, the

civil engineering sub-group had seen no chance of

accepting the ceiling price concept and had re-submitted

the target form of contract for consideration. He could

say that the target form of contract was not acceptable

to the MTSG, although he must stress that, as regards the MTSG's ceiling price concept, there were questions

CONFIDENTIAL

Contd.