LEGTAS
• **I AM DELIGHTED TO HEAR THAT YOUR NEGOTIATIONS WITH BALFOUR BEATTY HAVE REACHED THE STAGE WHERE YOU HAVE AGREED TO ISSUE THEM WITH A TTER OF INTENT. THE DEPARTMENT STANDS READY TO PROVIDE ANY FURTHER ASSISTANCE WHICH MAY BE NEEDED TO BRING THE CONTRACT TO FRUITION.
IT WILL BE NECESSARY FOR BALFOUR BEATTY TO INCUR SIGNIFICANT EXPENDITURES OVER THE NEXT THREE MONTHS ADDITIONAL TO THOSE ALREADY INCURRED IN ORDER TO MEET YOUR PROGRAMME FOR 1981. THEIR POSITION IS DIFFERENT FROM THAT OF GEC IN RESPECT OF THE POWER STATION BECAUSE THEY HAVE HAD TO ENTER INTO COMMITMENTS INVOLVING HIGHER IMMEDIATE EXPENDITURES DURING THE LETTER OF INTENT PERIOD.
THE AMOUNT TO BE SPENT OVER THIS PERIOD WILL BE ABOUT £3 MILLION OF WHICH BALFOUR BEATTY ARE ASKING ONLY FOR AN INTERIM PAYMENT OF
IN MY OPINION THIS IS VERY REASONABLE. ABOUT £1.8 MILLION.
I UNDERSTAND YOU HAVE AGREED TO SEEK THE AUTHORISATION OF YOUR BOARD TO MAKE PAYMENTS ON ACCOUNT TO BALFOUR BEATTY AND WOULD BE GRATEFUL IF YOU COULD USE YOUR BEST ENDEAVOURS TO SEE THAT YOUR BOARD DOES AGREE TO SUCH PAYMENTS.'' ENDS
6. KADOORIE IS BEING STUBBORN ON INTERIM PAYMENTS AND I THINK IT
WOULD BE HELPFUL IF YOUR MESSAGE COULD BE TELEXED DIRECTLY TO HIM AT ST GEORGE'S BUILDING (TELEX NO.73427 KADOO HX) WITH A COPY TO
LATER IN THE WEEK A ME 'THROUGH NORMAL CHANNELS FOR INFORMATION. TELEPHONE CALL MAY BE NECESSARY TO UNDERLINE THE IMPORTANCE OF THIS, MATTER FOR BALFOUR BEATTY AND THE DIFFERENCES IN THEIR EXPENDITURE PATTERN FROM THAT OF THE GEC PROJECT. UNFORTUNATELY KADOORIE WILL NOT BE AVAILABLE ON THE TELEPHONE THIS EVENING AS HE IS ATTENDING A DINNER TO MARK THE 50TH ANNIVERSARY OF THE PENINSULA HOTEL.
MARCH
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