PLEDGED.
(D) IN PARTICULAR THEY HAD FOCUSED ON A FIXED PRICE TO WH H HONG KONG (INCLUDING MEMBERS OF EXCO) HAVE BECOME CONDITIONED BY MUCH DEALING WITH JAPAN AND WHICH THEREFORE HAS A STRONG APPEAL.
; (E) THEY HAD CORRECTLY DEDUCED THAT GUARANTFE ISSUE WAS NOT VITAL SINCE IN PRACTICE IT IS HIGHLY UNLIKELY TH IT WILL BE CALLED UPON"'.
(F) PRICE THEY HAVE OFFERED IS BELOW CEILING BUT IS HIGHER THAN, E.G. THE ITALIANS HAD BEEN OFFERING. IT MAY HAVE BEEN PITCHED HIGH TO GIVE ADEQUATE MARGIN FOR CONTINGENCIES, ESCALATIONS AND EXCHANGE RATE VARIATIONS (ON LATTER TWO THERE APPEARS TO BE SOME MARCINAL FORMULA PROVISIONS). BUT HONG KONG GOVERNMENT IS PREFARED TO LET CONTRACTOR MAKE EXTRA PROFIT IN EXCHANGE FOR KNOWING EXACTLY WHAT THE JOB WILL COST THEM.
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PAGE FOUR
(4) ALTHOUGH THEORETICALLY POSSIBLE THAT EVEN IF JAPANESE BID IS ACCEPTED WITH NO COUNTERS, NECOTIATIONS WITH THEM OVER DETAILED CONTRACT COULD BREAK DOWN, THIS WAS NOT VERY LIKELY. THEY WERE TOO GOOD TO LET THAT HAPPEN.
7. WE DISCUSSED PROBLEM OF PRICING AT PRESENT STAGE WHEN SO LITTLE INFORMATION IS AVAILABLE. I REHEARSED ARGUMENTS BRITISH GROUP HAVE ADVANCED IN PAST AGAINST QUOTING PRICE UNTIL MORE IS KNOWN OF TERRAIN AND THEIR ANXIETY TO BE SURE THAT ANY PRICE QUOTED WOULD BE REALISTIC VALUE FOR MONEY AND EQUALLY FAIR TO CLIENT AND CONTRACTOR.
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GOVERNOR SAID HE COULD NOT SEE WHY GROUP COULD NOT PUT A FIGURE IN THEIR BID IF THEY CAN MAKE ESTIMATES FOR THEIR OWN PURPOSE (POINT (B) OF YOUR CHRISTIAN 40).
9. NOR COULD HE SEE WHY IT WAS NOT POSSIBLE FOR BRITISH AND ITALIAN GROUPS TO PUT TOGETHER THE PREVIOUS VERY GOOD' PROPOSALS THEY HAVE PREPARED INTO ONE DOCUMENT, ADDING A PRICE, AND MAKING THAT THEIR COUNTER BID' WHICH HE STRESSED WOULD ONLY BE A BID NOT A CONTRACT''.
10.
IT WOULD NOT MATTER IF THE PRICE WENT OVER THE CEILING
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