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TO BOYCE, HEAD OF SCHRODERS HERE, WHO SAID THAT HE THOUGHT HIS PEOPLE AT A WORKING LEVEL HAD HAD REGULAR CONTACTS WITH THE HONG KONG AUTHORITIES BUT HE WOULD CONSIDER WHETHER MORE NEEDED TO BE DONE. BURNS MIGHT LIKE TO RAISE THIS POINT HIMSELF WITH SCHRODERS. ADAMS (DTI) MIGHT ALSO THINK IT WORTH DISCUSSING WITH AJCL. A SUBSEQUENT CALL FROM SCHRODERS FROM ONE OF THEIR MIDDLE
LEVEL STAFF WORKING ON THE PROJECT TOLD ME THEY HAD HAD NUMEROUS CONTACTS WITH THE HKG, BUT AJCL AS A MATTER OF POLICY HAD WISHED TO AVOID HIGH LEVEL SUBSTANTIVE TALKS FOR FEAR THAT ANYTHING THEY
SAID AT THEM MIGHT BE PASSED TO THEIR COMPETITORS. I HOLD HIM IT WAS FOR THEM TO DECIDE HOW TO PLAY THEIR HAND, BUT THEY MIGHT FIND IT HELPFUL TO BE AWARE OF THIS COMMENT FROM THE HKG.
3.
BURNS MAY ALSO THINK IT WORTH DISCUSSING WITH SCHRODERS THEIR ATTITUDE TO THE CONTRACT TERMS (PARA 8 MY TELNO OTTER 180), EVEN ALTHOUGH THIS IS PERHAPS MORE A MATTER FOR TRAFALGAR HOUSE AND COSTAIN. AMONG COMPANIES HERE THERE IS STILL CONSIDERABLE
DISQUIET ABOUT THE CONTRACT TERMS AND PARTICULARLY THE REQUIREMENT FOR A FIXED PRICE BID TO COVER 5 YEAR'S WORK. SOME WONDER WHETHER THE GROUPS WILL ONLY PUT IN QUALIFIED BIDS (WHICH THE HONG KONG GOVERNMENT TRADITIONALLY REJECTS), OR MAY DECLINE TO BID AT ALL ON THE GROUNDS THAT THE RISKS ARE TOO HIGH WHEN THE SUMS ARE LARGE ENOUGH TO BANKRUPT ANY COMPANY, OR THAT THE BIDS IN ORDER TO COVER THE RISK FACTOR WILL BE GREATLY HIGHER THAN ENVISAGED IN THE HKG'S PLANNING. SUCH WORRIES ARE COMMON, ALTHOUGH TO BE FAIR THERE ARE OTHERS WHO TAKE A MORE SANGUINE VIEW OF THE CONTRACT CONDITIONS. TO KNOW WHETHER SCHRODERS, AS FINANCIAL ADVISERS TO THE UK'S LEADING CONTESTANTS, SHARE ANY OF THESE CONCERNS WOULD BE OF INTEREST.
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