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We are naturally reluctant to make these apparently new points about PWD capacity and purchases, but I have discussed the matter with my Director and we must ask you to make them as we cannot take any chances with getting the full £17m for capital works.
The following reply would meet the foregoing points:-
"Your paragraph 2. Existing condition is that whole agreement subject to review if capital works costs vary by 50 per cent or more vide paragraph 3(1) of our Tel No 553. Capital works will be charged against pounds 17 million at actual cost. On this understanding no objection to base date for review April 71. Though not points for Legco our agreement assumes. One. PD capacity adequate for capital works programme and
Purchase instead of new construction chargeable to capital works in particular instances where it is the preferable alternative."
Copies to Mr A F Thorp
Mr D J J Brack
1990
IKV.
Stelton
2087.
735-7611-2087.
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