TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 106

THE BEST POSSIBLE AND TENABLE, THEY NEEDED MORE TIME AND INFORMATION BEFORE COMMITTING THEMSELVES ON THE FIGURE.

4. FOLLOW UP WAS TIMELY SINCE ALTHOUGH THE STEERING GROUP WAS MEETING ON THURSDAY WHEN LETTER WAS DELIVERED IT APPEARS NOT TO HAVE BEEN SUBSTANTIALLY DISCUSSED THEN AND IS TO BE DISCUSSED AT A MEETING ON MONDAY (19) EVENING.

5.

HADDON CAVE STRESSED THAT HE HAD NOT STUDIED THE LETTER IN DETAIL AND COULD NOT IN ANY CASE COMMENT ON IT DEFINITIVELY

UNTIL STEERING GROUP HAVE DISCUSSED IT. HE EXPECTED THAT THEY WOULD BE SENDING A REPLY ON 20 NOVEMBER IN WHICH THEY WOULD TAKE

NOTE OF THE FORMATION OF THE ANGLO ITALIAN GROUP AND RAISE QUERIES OR SUCH CLARIFICATION ON SUCH POINTS AS THEY COULD IDENTIFY AS RELEVANT TO A COUNTER-BID AND TO THE STEERING GROUP

DESIDERATA.

6. HE SAID HE HAD BEEN EXPECTING FIRST A LETTER NOTIFYING THE FORMATION OF THE ANGLO ITALIAN GROUP AND A SECOND SOME TIME LATER (''EVEN ON 2ND DECEMBER ITSELF'') TO CONSITUTE THE COUNTER BID. AS IT WAS THE LETTER SEEMED TO AIM TO DO BOTH AT ONCE. BUT HE WAS NOT CLEAR WHAT ELEMENTS IN IT WERE SUPPOSED TO BE A COUNTER

BID.

7. HE COMMENTED THAT SUCH REFERENCE AS THERE WAS TO THE PRICE SEEMED TO HIM TO BE MUDDLED'' AND HE THREW IN THE ASIDE THAT CONSIDERATION OF FARE STRUCTURE WAS **NONE OF THEIR BUSINESS'

8. I SAID THAT IF THE LETTER WAS READ WITH THE POINTS I HAD NOW

MADE IT WOULD BE SEEN THAT THE COUNTER MID WAS A MIXTURE OF THE BEST ELEMENTS OF BOTH THE BRITISH GROUP AND THE ITALIAN CONSORTIUM BIDS, WAS AIMED TO MEET ALL THE DESIDERATA INCLUDING NO

GUARANTEE

•

AND INSTEAD OF THE OLD BRITISH GROUP TARGET

PRICE CONCEPT OFFERED TO PRODUCE A FIRM PRICE AS SOON

AS THERE WAS SUFFICIENT INFORMATION PROPERLY TO FORMULATE IT. WAS THIS NOT ENOUGH TO JUSTIFY WAITING FOR THE DETAILED PROPOSAL TO SET ALONGSIDE THE JAPANESE, WITH ITS SHORTFALL ON THE GUARANTEE POINT?

9.

HE AGREED THAT THE JAPANESE HAD NOT MET ONE OF THE DESIDERATAA AD IMPLIED THAT THEY HAD ORIGINALLY FALLEN SHORT ON SOME OTHER POINTS. THE STEERING GROUP HAD THEREFORE NOT ACCEPTED THE BID AT FIRST BUT HAD CLARIFIED IT WITH THE JAPANESE UNTIL IT MET ALL, REPEAT ALL, THE DESIDERATA EXCEPT ONE THE GUARANTEE QUESTION QND ON THIS THEY HAD BEEN VERY PERSUASIVE". STEERING GROUP

MAS

ATION.