CONTRACT AT A POSSIBLE LOSS.
5. VOSPER THORNYCROFT BELIEVE THEY HAVE A BETTER PRODUCT THAN ASI BUT EAR THE EFFECTS OF AN AUSTRALIAN GOVERNMENT SHIPBUILDING SUBSIDY AVAILABLE TO ASI OF UP TO 18 PERCENT ON COST. THE AUSTRA ANS HAVE SUPPLIED A SIMILAR CRAFT TO PAPUA NEW GUINEA UNDER AN AID PROGRAMME WHERE, VOSPER THORNYCROFT SAY, IT HAS NOT BEEN VERY SUCCESSFUL.
6. VOSPER THORNYCROFT HAVE SPENT MORE THAN POUNDS 0.25 MILLION CON AN ANNUAL TURNOVER OF POUNDS 80 MILLION) IN PURSUING THIS ORDER. THEY HAVE PAID NUMEROUS VISITS AND HAVE DONE ALL THAT COULD BE ASKED OF THEM. WE HAVE GIVEN THEM ALL THE ASSISTANCE WE CAN.
7. ALTHOUGH THE ORDER IS NOT LARGE IN GLOBAL OR EVEN HONG KONG TERMS IT IS VERY IMPORTANT TO THIS COMPANY. I APPRECIATE OF COURSE THE DIFFICULTIES IN INTERVENING IN OPEN AND WHOLLY FAIR TENDERING SITUATIONS. I ALSO REALISE THAT ANY ATTEMPT TO DO SO IS NOT LIKELY TO PRODUCE AN ANSWER OTHER THAN THAT THE RESULT WILL BE DETERMINED BY AN OBJECTIVE ASSESSMENT OF THE VARIOUS BIDDERS. HOWEVER THIS IS IMPORTANT DEFENCE EQUIPMENT FOR HONG KONG. IT IS AN IMPORTANT EXPORT ORDER FOR THE UK. IN MOST OTHER PARTS OF THE WORLD WE WOULD SURELY GIVE A BRITISH COMPANY IN SUCH A SITUATION FULL POLITICAL SUPPORT.
8. I THEREFORE WONDER WHETHER WE COULD NOT PULL OUT A FURTHER STOP. A PERSONAL AND CONFIDENTIAL LETTER FROM THE SECRETARY OF STATE OR LORD CAITHNESS TO THE GOVERNOR COULD SAY THAT MINISTERS ARE WATCHING THIS ORDER CLOSELY AND HOPE VERY MUCH THAT THE BRITISH FIRM(S) ARE SUCCESSFUL (A COMPLICATION IS THAT ANOTHER BRITISH FIRM, FBM ARE ALSO A BIDDER, BUT THEY HAVE NOT BEEN CALLED FOR ANY POST-BID CONSULTATIONS AND SEEM TO BE OUT OF IT). IT COULD GO ON THAT WE APPRECIATE THAT THE OUTCOME WILL BE DECIDED BY IMPARTIAL JUDGEMENT OF A COMPETITIVE TENDER, BUT THAT IF THE BIDS ARE VERY CLOSE WE HOPE THE HONG KONG GOVERNMENT WILL TAKE FULL ACCOUNT OF THE RELIABILITY AND PROVEN TRACK RECORD OF THE BRITISH SUPPLIERS AND OF BRITAIN'S LONG SUPPORT FOR AND ASSISTANCE WITH THE DEFENCE ELEMENTS IN HONG KONG. IMPLICIT IN THE LETTER ALTHOUGH NO NECESSARILY STATED MIGHT BE THE THOUGHT THAT HMG HAVE GIVEN CONSIDERABLE RECENT SUPPORT TO THE HONG KONG GOVERNMENT E.G. OVER THE PASSPORT PACKAGE AND OVER PADS AND THAT WE FOR OUR PART WOULD HOPE FOR A BENIGN ATTITUDE TOWARDS BRITISH SUPPLIERS FACED WITH A MAJOR GOVERNMENT ORDER OF THIS SORT.
HEAP
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HMLNAN 8268
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