GRPS 360
CYPHER/CAT A
FM HONG KONG 220145Z
CONFIDENTIAL
CONFIDENTIA
RECEIVE IN PA
REGISTRY 0.51
28 FEB 1974
HKK 21/12
TO ROUTINE F C O TELNO 242 OF 22ND FEBRUARY, 1974. BCARFE.
#
257 IT
INFO ROUTINE
(17)
YOUR TELNO 196.
L'CT
CE.
18
CPA PURCHASE OF WIDE-BODIED AIRCRAFT.
CPA ADVISE THAT THEY HAVE NOW CONCLUDED DISCUSSIONS WITH BOTH AIRCRAFT MANUFACTURERS ON THE QUESTION OF A FURTHER DEFERMENT TO THE DATE OF SIGNING A LETTER OF INTENT, IN ORDER TO ACCOMMODATE THE REQUEST CONVEYED IN DTI TELNO ALLOT 24 OF 14TH FEBRUARY. IN ORDER TO PROVIDE SOME LATITUDE, CPA DISCUSSIONS WITH THE MANUFACT- URERS HAVE BEEN ON THE BASIS OF DEFERRING THE SIGNING OF THE LETTER UNTIL 18TH MARCH.
2. LOCKHEED HAVE AGREED TO THIS DATE WITHOUT ANY PENALTY IN DELIVERY OR PRICE. DOUGLAS HOWEVER HAVE INCREASED THE COST PER AIRCRAFT OF THE INITIAL TWO AIRCRAFT BY US DOLLARS 125,000 EACH IN THE EVENT THAT CPA EXTEND THE LETTER OF INTENT DATE FROM 28TH FEBRUARY TO 18TH MARCH. DELIVERY DATES WILL NOT BE AFFECTED.
IN ADDITION DOUGLAS HAVE TOUGHENED UP THEIR TERMS REGARDING PAYMENTS OF NON-REFUNDABLE DEPOSITS WHICH ARISE FROM THE DATE OF CONTRACT SIGNING, IN THE EVENT THAT THE CONTRACT DATE IS DELAYED BEYOND MID APRIL.
3.
BOTH LOCKHEED AND DOUGLAS HAVE IMPROVED OVERALL ON THEIR PREVIOUS PROPOSALS. AS COMPARED WITH THE PRICES QUOTED ON 29TH JANUARY, THE IMPROVEMENTS ARE :-
2 AIRCRAFT PURCHASE
4 AIRCRAFT PURCHASE
LOCKHEED
US DOLLARS 800,000 PER AIRCRAFT
US DOLLARS 950,006
PER AIRCRAFT
DOUGLAS
US DOLLARS 250,000 PER AIRCRAFT
US DOLLARS 250,000 PER AIRCRAFT
/ (THE
CONFIDENTIAL
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