0003160 G.F. 316
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5.
4
Second, the Japanese
Consortium argued that their
difficulties stemmed from certain
unforeseen developments that had hit
the Japanese economy as a result
of the oil crisis in late 1973 and
early 1974. Be that as it may, the
fact remains that the effects of the
oil crisis must have been apparent for
the Consortium during the period between
the Hong Kong Government's acceptance of
the Consortium's pre-emptive bid (11th
December 1973) and the signing of the
Letter of Intent (15th February 1974).
The Provisional Authority had naturally
assumed that these developments had
been fully taken into account during
the period preceding the signing of
the Letter of Intent. The Consortium
could have withdrawn or asked for
modifications in the terms of the
Letter of Intent during this period.
But, for its own obscure reasons, it
has waited until now to withdraw.
6.
Third, by the terms of the
Letter of Intent the Consortium
explicitly undertook to provide design
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