TNAG-0426-FCO40-472-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 192

(2)

II.

III.

V.

VIII.

PRICING

Contractual Arrangements

(a)

The Anglo-Italian Group's position remains as stated in Sir Douglas Clague's letter of 20th July 1973 attached.

Pricing

The prices quoted are for the Initial System (without Chater Station)

Should the Steering Group wish to based on December 1972 technology.

vary this requirement, alternative prices can be readily provided.

Export Credits/Consortium Finance

The answers already given in our earlier separate proposals remain unchanged as therefore do certain differences in respect of the

British and Italian financing indications.

Interface with Consultants

This requirement is accepted and the previous British reservations

in respect of civil works is withdrawn.

As you know, in approaching the several questions which arise in connection with pricing, we have been caught between the conflicting pressures of giving you meaningful and possibly binding figures before the information is available which would enable their reasonable

determination, and the protection of our interests both in the sense of not subjecting our Companies to unreasonable risks and in that of avoiding the presentation of proposals not as attractive as they might be when a sounder evaluation of Project features and costs

becomes possible. We have now accepted that some kind of Project price

1

bid must be submitted at this time, and we have determined that the

best compromise we can see to reconcile the conflicting pressure is

to quote the ceiling price you require.

.