0003160 G.F. 316

SECRET

Dear Sir,

15th February, 1974.

RE: MASS TRANSIT RAILWAY

I refer to the Letter of Intent issued by the Hong

Kong Government to the Japanese Consortium today.

I confirm on behalf of the Hong Kong Government that, provided the overall design and performance requirements for the Mass Transit Railway are met, the Japanese Consortium will be at liberty to prepare and submit its own detailed designs and specifications. I further confirm that, as the distinction between overall performance requirements and detailed designs is not easily definable, the question of what constitutes the one and what constitutes the other will be open for discussion in the negotiations for the Formal Contract without, in any way, prejudicing or affecting the Consortium's position or its right to payment for preliminary works approved by Government should such negotiations not lead to a Formal Contract being signed.

Yours faithfully,

Sgd. (C.P. Haddon-Cave) Financial Secretary

Mr. H. Sakamaki,

Managing Director,

Mitsubishi Corporation

(on behalf of the Japanese Consortium)

SECRET

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