IN ADDITION TO THE FOREGOING, PARAGRAPH 4(C) OF THE DRAFT LI SHOULD, I BELIEVE, BE AMENDED TO EXCLUDE THE WORDS IN THE SQUARE BRACKET AS THEY ARE NOT RELEVANT. I ALSO UNDERSTAND THAT THE DATE OF 31ST MARCH 1979 IS NOT CORRECT AS THE SCHEME EXPIRES ON 26TH MARCH AND ECGD WISH TO RESTRICT THAT DATE FOR ADMINISTRATIVE REASONS TO THE 1ST MARCH. HOWEVER, YOU SHOULD CHECK THIS POSITION WITH ECGD. I HAVE NO OTHER COMMENTS ON THIS DRAFT.
TER
5. DRAFT LETTER OF INTENT THERE IS A MINOR TYPOGRAPHICAL ERROR IN PARAGRAPH 3 WHICH SHOULD READ, QUOTE IT IS APPRECIATED THAT IT MAY BE NECESSARY UNQUOTE, AND THE COMMENT MADE ABOVE REGARDING THE EXPIRY OF THE COST ESCALATION SCHEME APPLIES EQUALLY TO PARAGRAPH 7 OF THE LETTER OF INTENT. I SHOULD ALSO COMMENT THAT IT IS CONCEIVABLE, ALTHOUGH POSSIBLY UNLIKELY, THAT THE LETTER OF INTENT WOULD BE MAINTAINED AS VALID BEYOND MARCH 1979 EVEN THOUGH THE COST ESCALATION SCHEME HAD BEEN WITHDRAWN. THE WORDING EXPRESSED IN PARAGRAPH 7 IMPLIES THAT THE ONLY OPTIONS IS TO REGARD THE LETTER OF INTENT AS COMPLETELY NON-EFFECTIVE. I HAVE NO FURTHER COMMENTS.. ON THE LETTER OF INTENT WHICH IS IN ALL OTHER RESPECTS ACCEPTABLE.
K.W. KNIGHT.
6. ROBERTS (LAZARDS) BELIEVES GEC'S POINT ABOUT QUOTE UP-DATED PRICE UNQUOTE MUST BE MET, PREFERABLY BY AMENDMENT TO LETTER ON THE LINES THEY PREVIOUSLY PROPOSED. FAILING THAT A WRITTEN STATE- MENT FROM A SENIOR CLP FIGURE OR AS A LAST RESORT FROM BISCHOFF TO DEMONSTRATE THAT CLP ACCEPT GEC'S UNDERSTANDING OF THE MEANING OF THE PHRASE WOULD BE ESSENTIAL. MY OWN VIEW IS THAT IT CANNOT BE RIGHT FOR THE SUPPLEMENT TO STATE SOMETHING THAT AT LEAST ONE OF THE PARTIES THINKS TO BE UNTRUE.
7. ROBERTS' TEXTUAL POINTS ARE THESE:
(1) PARA 4A OF LIPPITT LETTER. REFERENCE TO PROVISIONAL SUMS IMPLIES ECGD WILL SUPPORT 100 PER CENT OF LOCAL ELEMENT WHICH HE DOUBTS IS THEIR INTENTION: AND
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(11) LETTER OF INTENT. PARA 2B SHOULD END AT QUOTE..... PURCHASE OF THE ADDITIONAL PLANT UNQUOTE IN LINE 6 WITH THE FINAL SENTENCE QUOTE IT IS OUR...... ADDITIONAL PLANT UNQUOTE APPEARING AT THE LEFT-HAND MARGIN.
8. THERE ARE THREE TEXTUAL POINTS THAT STRIKE ME AFTER "COMPARISON WITH THE LIPPITT LETTER OF 15 DECEMBER 1977 AND ITS DRAFT LETTER OF INTENT.
IN PARA ZA œË THE DRAFT LIPPITT LETTER THE DEPARTMENT
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