0003160 G.F. 316
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DRAFT
ANNEX F
Statement by the Mass Transit Railway Provisional Authority
(to be issued in the event of
the Governor in Council rejecting the Consortium's offer of
compensation.
Embargoed until
Executive Council has met on 14th January 1975)
Japanese Consortium withdraws from
Negotiations
The Japanese Consortium has
informed the Mass Transit Railway
Provisional Authority that it is unable
to continue negotiating a contract to
build, equip and finance the first four
stages of the Mass Transit Railway
within the context of the Letter of
Intent signed on 15th February 1974.
2。
The Consortium has given, as
its reason for deciding to withdraw from
the negotiations, the difficulties
experienced by the Japanese economy as a
result of the oil crisis in late 1973
and 1974. The Consortium claims that
the magnitude of these difficulties
could not have been reasonably foreseen
at the time it signed the Letter of
Intent and that they could not now be
surmounted. At a meeting held in
November 1974 the Consortium asked for
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