TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 124

CONFIDENTIAL

THE MEMBERS OF THE NEWLY-FORMED ANGLO-ITALIAN GROUP WILL

BE AS FOLLOWS:-

INTERMETRO

GEC-ELLIOTT AUTOMATION

COSTAIN CIVIL ENGINEERING

· TARMAC

BALFOUR BEATTY.

THE ITALIANS WILL LEAD ON THE CIVIL ENGINEERING, SHARING THE WORK ON A 75/25 PERCENTAGE BASIS WITH US.

THE BRITISH WILL LEAD ON THE M AND E, SHARING THE WORK ON A 68/40 PERCENTAGE BASIS WITH THE ITALIANS,

AN ANGLO-ITALIAN COMPANY WILL BE REGISTERED IN HONG KONG AND

THIS COMPANY WILL ENTER INTO A SINGLE CONTRACT WITH THE MASS

TRANSIT AUTHORITY. THE STRUCTURE AND UNDERLYING SUPPORT FOR THE COMPANY WILL BE SIMILAR TO THOSE OUTLINED IN MY LETTER TO YOU DATED 20 JULY. THE HONG KONG COMPANY WILL IN TURN PLACE CONTRACTS FOR THE

CIVIL AND M AND E SECTIONS OF THE WORK WITH THE ITALIAN AND BRITISH COMPANIES.

IF THESE PROPOSALS ARE ACCEPTABLE, THE ANGLO-ITALIAN GROUP ARE READY TO EMBARK IMMEDIATELY UPON AN EVALUATION OF THE

CONSULTANTS' DEFINITIVE SPECIFICATIONS IN ORDER TO PRODUCE FOR

YOU A FIRM PRICE BY, SAY, APRIL 1974.

TO ACHIEVE THIS TARGET, PART OF THE BID MAY HAVE TO BE BASED ON OUR OWN DESIGN ASSUMPTIONS SINCE THE CONSULTANTS' FLOW OF TECHNICAL INFORMATION, EVEN ON THE PROGRAMME ENVISAGED IN YOUR LETTER OF 27 SEPTEMBER TO ME, MAY NOT BE SUFFICIENT TO MEET THIS TIME SCALE. WE FEEL THAT THIS PLAN OF ACTION IS JUSTIFIED NOT ONLY BY THE COST

SAVINGS OF TIME, BUT ALSO BY THE FACT THAT IT WILL BRING INTO PLAY

AT AN EARLY STAGE THAT FREEDOM OF DESIGN WHICH HAS BEEN PROMISED AND WHICH WE MUST HAVE IF WE ARE TO KEEP WITHIN THE STIPULATED PRICE LEVELS. THE QUESTION OF THE COSTS OF SUCH AN EXERCISE HAS ALREADY BEEN DISCUSSED WITH YOU AND WE ARE ASSUMING THAT THERE WOULD BE REIMBURSEMENT IF A CONTRACT WAS NOT CONCLUDED WITH THE ANGLO-

ITALIAN GROUP.

2 CONFIDENTIAL

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