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4. ON E AND M CONTRACTS, OUR COMPETITORS WILL HAVE THE EDGE ON INTEREST RATES AND THE JAPANESE WILL BE COVERING PART OF THE LOCAL ERECTION COSTS. I AM CONCERNED THAT HERE AGAIN WE WILL FIND OURSELVES IN AN UNCOMPETITIVE POSITION. I CAN NOT JUDGE HOW SERIOUS THIS WOULD BE AND WHETHER WE ARE LIKELY TO LOSE CONTRACTS AS A RESULT. THIS MAY BECOME CLEARER AS TIME GOES ON. FOR THE PRESENT, AND SPECIFICALLY WITH REFERENCE TO THE CIVIL CONTRACTS, IT SEEMS ESSENTIAL THAT WE COME INTO LINE WITH THE OTHERS AND ABANDON THE STEP PROCEDURE. THIS IS LIKELY TO BE RELEVANT TO THE E AND M CONTRACTS TOO. THE CORPORATION IS LIKELY TO GO FOR A FLEXIBLE PACKAGE APPROACH WHICH WOULD ENABLE IT TO AGREE AN OVERALL PACKAGE, SUBJECT TO THE SUCCESSFUL BIDDER AGREEING TO INCLUDE CONTRACTORS SPECIFIED BY THE CORPORATION FOR CERTAIN OF THE E AND M CONTRACTS. THIS WOULD GIVE THE CORPORATION THE ADVANTAGE OF THE COORDINATION OF A PACKAGE, WHILE AVOIDING EQUIPMENT IT DID NOT LIKE. ALTHOUGH I VERY MUCH HOPE THAT WE WILL GET CONTRACTS IN AGGREGATE VALUED AT £15 MILLION OR MORE, HERE AGAIN THE STEP PROCEDURE COULD PLACE US AT A DISADVANTAGE IF THE MAIN CONTRACT WENT TO ANOTHER COUNTRY, BUT INCLUDED SOME OF THE SMALLER CONTRACTS FROM BRITAIN.
KINNEAR
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MR.ROBERTS, DOT, CRE 4. MR.BRYANT, DOT, OPG..
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