G.F. 316
:
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the Mass Transit Railway and having to
pay more because of price inflation.
The Provisional Authority is unable to
accept that Hong Kong should have to
suffer all the consequences of this
error of judgement and it has accordingly
lodged a claim for compensation with
the Consortium. The Consortiu.' were
unable to accept this claim but offered
to make an ex gratia payment as a gesture
of goodwill. On this basis, settlement
has been reached in the sum of $ million.
This settlement was approved by the
Governor in Council on 14th January 1975
as the basis for releasing the Consortium
from its obligations under the Letter
of Intent.
5.
A spokesman for the
Provisional Authority said that, while
the Consortium's decision is most
regrettable, in all the circumstances
the Consortium has genuinely tried to
negotiate a contract within the spirit
of the Letter of Intent. In so doing
›
the Consortium has considered variety
of alternatives in order to keep within
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