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Ir tharch's letter cloes not entirely tally with the preisons papes which he has forwarded on this subject, in particular the IC! Memorandum of sent under cover of his letter of 7 November to No Mophy" [Flag"]; this states, for example, that the output of the plant will be limited for teclinical reasons to 1500 tons p.a. The figure given in the memorandum for present consumption is 800 tonsp. a, forecast to rise to 1500 tons in five years. Yet in his letter of 19 December, I march speaks of consumption of 3500-4500 tons, and expresses surprise at reports" that the new plantwell produce twice as unch explosives as Hong Kong needs" (even though he had himself forwarded a report to that effect only oix weeks peironsly!)
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2. ICI seem to regard themselves as the originators of the whole idea of the factor and are undestandably con- cerned to find that the Government are intending to wok Dupont also to tender for what they clearly see as their baby: they are therefore looking for any way of loinging pressure to bear on the Hong Kong Government not to do the dirty on them. The Hong Kong Government's reasons for inviting Inpont as well as ICI to tender were but out in para 14 of Exco themorandum XCC (76) 7.7- Flag E. They are not very convincing, but the decision was clearly taken a long time ago, and I do not think there is any chance now of our getting it reversed. This being so, there is really not much we can say to comfort
say to comfort or reassure 1C1: they will get their chance to tender, ext in competition with Dupont. But you will no doubt wish all the same to
reasove your contacts : ICI, I doubt however whether there is any need for you to write back to N charch.
W.E.Chantill
(since
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