TNAG-0771-FCO40-975-Construction-of-underground-railway-system-in-Hong-Kong-1978 — Page 3

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LAST PAPER

INDEX

DAK OFFICER

RL

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No

Mr Lung

TELNO.INDUS 235 OF 15 DECEMBER,

AND TO ROUTINE D.O.T. (FOR ROYCE E.D.DIVISION).

FOR LIPPITT, DEPUTY SECRETARY.

MASS TRANSIT RAILWAYS. STAGE 2.

1. SANSOME HAS GIVEN ME THE FOLLOWING INFORMATION ABOUT HIS FORMAL MEETING YESTERDAY WITH NORMAN THOMPSON AND THE MTR ADJUDICATION COMMITTEE WHICH REPRESENTED HIS FINAL CHANCE TO ADJUST METCAM'S BID.

2.' SANSOME PRECEDED THE JAPANESE BUT WAS FOLLOWED BY THE

AUSTRALIANS. AT THE OUTSET THOMPSON MADE IT ABSOLUTELY CLEAR THAT AT 6 P.M LAST NIGHT ALL NEGOTIATIONS WERE FINISHED 1.E ONCE SANSOME'S FINAL BID WAS ON THE TABLE THERE WOULD

BE NO OPPORTUNITY FOR HIM OR OTHER COMPETITORS TO CHANGE THE PRICE.

3. AFTER VERY CAREFUL THOUGHT AND TAKING ACCOUNT OF SUCH

INTELLIGENCE WHICH WE AND GEMMILL HAD BEEN ABLE TO PROVIDE,

SANSOME DECIDED TO TABLE HIS WALK-AWAY PRICE. IN BROAD TERMS

THIS REPRESENTS A REDUCTION OF SEVENTEEN PERCENT ON THE PRICE

WHICH NEARLY CAUSED THE ELIMINATION OF METCAM AT THE END OF

SH) OCTOBER (MY CREDA 322 REFERS). THIS REQUIRED HIM TO USE ALL

THE £3.75 MILLION REMAINING FROM THE £5 MILLION WHICH HE TELLS

ME WAS MADE AVAILABLE FROM D.0.1 SOURCES, THE OTHER £1.25 MILLION

HAVING BEEN USED FOR THE KCR BID. SANSOME HAS ASKED ME TO

LET YOU KNOW THAT HE HAS MORE THAN MATCHED THIS CONTRIBUTION

FROM HIS OWN RESOURCES BUT HAS NOT REPEAT NOT YET SO INFORMED

GARDINER.

4. SANSOME'S WRITTEN FINAL OFFER WAS FORMALLY REGISTERED AND