TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 199

UNQUOTE.

2. AT THE SAME TIME THE FOLLOWING LETTER HAS ISSUED TO EACH OF THE OTHER THREE CONSORTIA:

QUOTE

DEAR SIR,

PLEASE REFER TO THE SECRETARY, MASS TRANSIT STEERING GROUP'S LETTER OF 20 SEPTEMBER, 1973, ENCLOSING COPIES OF A PROPOSED SUPPLEMENTARY PROCEDURE FOR DEALING WITH A PRE-EMPTIVE BID.

2. 1 AM NOW TO NOTIFY YOU THAT THE STEERING GROUP HAS RECEIVED A PRE-EMPTIVE BID AND HAS, AFTER CAREFUL CONSIDERATION AND ASSESSMENT, TODAY DECLARED THE BID TO BE VALID.

3. YOU WILL WISH TO KNOW THAT THE BID INQUESTION MEETS ALL THE QUOTE MUSTS UNQUOTE IN THE GOVERNMENT'S LIST OF REQUIREMENTS, WITH THE EXCEPTION OF REQUIREMENT V(G). IN OTHER WORDS, THE BID HAS BEEN BASED ON THE ASSUMPTION THAT A HONG KONG GOVERNMENT GUARANTEE WOULD BE PROVIDED IN RESPECT OF THE EXPORT CREDITS/CONSORTIUM FINANCE TO BE ARRANGED BY THE BIDDER, WHILE THE STEERING GROUP IS NOT PERSUADED THAT THE GOVERNMENT'S POSITION ON THE QUESTION OF A GUARANTEE SHOULD BE MODIFIED IN ANY WAY, THE GROUP HAS TAKEN AN OVERALL VIEW OF THE BID IN QUESTION, AND HAS COME TO THE CONCLUSION THAT IT SHOULD NOT WITHHOLD VALIDATION OF THE BID SOLELY ON THE GROUND THAT IT DOES NOT MEET ONE OF THE GOVERNMENT'S QUOTE MUSTS UNQUOTE.

4. NEVERTHELESS, THE FACT THAT A PRE-EMPTIVE BID HAS BEEN VALIDATED, DESPITE THE FACT THAT IT FALLS SHORT IN THIS RESPECT, CARRIES CERTAIN IMPLICATIONS WHICH YOU WILL DOUBTLESS WISH TO CONSIDER. THE STEERING GROUP HAS CONSEQUENTLY DECIDED TO EXTEND THE NOTIFICATION PERIOD ENVISAGED IN PARAGRAPH 3(B) OF THE SUPPLEMENTARY PROCEDURE FROM 30 TO 45 DAYS, TO ASSIST YOU TO RE-ASSESS YOUR POSITION AND TO GIVE YOU MORE TIME TO SUBMIT A COUNTER-BID. YOUR ARE, THEREFORE, NOW ADVISED THAT ANY COUNTER-BID WHICH YOUR WISH TO SUBMIT SHOULD REACH ME ON OR BEFORE SUNDAY, 2 DECEMBEER,,, 1973.

5. WITH THE RECEIPT OF A VALID BID, THE SUPPLEMENTARY PROCEDURE ENCLOSED WITH THE SECRETARY, MASS TRANSIT STEERING GROUP'S LETTER OF 20 SEPTEMBER, 1973, AS MODIFIED BY PARAGRAPH 4 ABOVE, NOW COMES INTO OPERATION. I SHOULD, HOWEVER, LIKE TO REMIND YOU THAT:

(A) AUTHORITY FOR THE ACCEPTANCE OF ANY PRE-EMPTIVE BID OR COUNTER- BID RESTS, AS YOU ALREADY KNOW, WITH THE GOVERNOR IN COUNCIL AND

(B) UNTIL SUCH TIME AS STEP 5(A) OR STEP 5(B)(111), AS THE CASE MAY BE, IS REACHED IN THE SUPPLEMENTARY PROCEDURE, THE STEERING GROUP WILL CONTINUE TO ISSUE INFORMATION TO ALL INTERESTED CONSORTIA IN ACCORDANCE WITH THE MAIN SEQUENCE OF EVENTS.

YOURS FAITHFULLY,

(C.P. HADDON-CAVE) FINANCIAL SECRETARY.

UNQUOTE

MACLEHOSE

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SENT AT 19/06067 RD