THI
<
PRIVATE & CONFIDENTIAL
B. Thorne, Esq.,
British Trade Commissioner,
Shell House,
HONG KONG,
R
ユウ
1
་
1
21st July, 1967
11
* S
i
Dear Mr. Thorne,
Both Mr. J.D. Clague and Mr. L. Kadoorie have asked me to let you have copies of our recent exchanges with Costains. We have accepted all their requests and have shown our determination to go ahead by agreeing to pay out a further £35,000 over the next two months. Hongkong Government have also declared their interest by agreeing to reimburse us 50% of these charges. We have accepted that conditions in Hong Kong have altered and have there fore agreed to reimburse Costains should the cost of freight, labour, cement and quarry
This is a considerable departure from prices rise during the period of contract.
our previous stand that risks of this type should be born by the Contractor, but our Board insist that sometime over the next few weeks a ceiling for such escalation should be worked out with Costains.
Both the Hongkong Government and ourselves feel most strongly on this point which is regarded as fundamental. We have not yet attempted to establish a figure for this ceiling as this can only be worked out with Costains when the relevant figures are to hand.
I feel that Costains will eventually accept our point of view on this but we consider that it was important that you should be kept in the picture.
Encl. RJF8/ij
Yours sincerely,
13
R.J.F. Brothers.
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