CONFIDENTI AL
5.
Furthermore (according to Blye's letter to Milton of 12 October 1977) "... coins are the only goods of significant value that this Government does not obtain by open tender" and that in 1976 this amounted to approximately a quarter of one percent of total Government expenditure. In addition, putting the contract out to open tender does not necessarily guarantee that Hong Kong will get the best deal: the Treasury feel that private mints would be so eager to obtain the prestige of an order to the Hong Kong Government that their initial offer would be a "loss-leader", but that this loss would be more than made up in subsequent years. Naturally the Royal Mint could not compete with such sharp pricing tactics and would have to retire from the competitive field.
6. Consequently, I think there is little to be gained by dissenting from the view held by the Treasury, and the Department of Employment, which, I assume also has Welsh · Office support. And although I can find no record of it Mr Smith is of the opinion that both Mr Murray and Mr Cortazzi dismissed this suggestion at the last meeting of the standing committee, when it was raised under Any Other Business.
Mark Hull
17
January 1978
M Hull
Economists Department
Mr White (FRD) to answer paragraph 3 of Mr Thompson's minute
See minute below fo
bow 17/1
CONFIDENTIAL
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