RECEIVED IN REGISTRY No. 51
6 OCT1975
95
HOFO 024/03
PP DO T
GR 100
CYPHER/CAT A
FM BTC HONG KONG 030945Z
RESTRICTED
NO DISTRIBUTION
R1010/03
DUT
Ru Kiza
нков TRED
TO PRIORITY DO T TELNO CREDA 106 OF 3 OCTOBER.
FOR FARRY OPG FROM KINNEAR.
YOUR TEL CREDA 173: MASS TRANSIT.
87
pra.
WHETHER OR NOT J L KIER GET ONE OF THE FIRST THREE CIVIL CONTRACTS IS LIKELY TO DEPEND INTER ALIA ON THEIR COMING TO A JOINT AND SEVERAL LIABILITY ARRANGEMENT WITH ANOTHER CONTRACTOR.
2. THOMPSON TAKES VIEW THAT J L KIER CAN NOT BE ISOLATED FROM PROBLEMS ON FRENCH SIDE OF THE GROUP AND THAT IF FRENCH GROUP GO BANKRUPT, KIER WILL HAVE TO ASSUME SOME OF THE LIABILITY. BECAUSE OF MULTI-CONTRACT NATURE OF THE PROJECT, HE IS UNWILLING TO TAKE THE RISK OF GIVING A CONTRACT TO A FIRM WHICH MIGHT BE DRAGGED INTO FINANCIAL PROBLEMS OF THE GROUP AS A WHOLE. REPRESENTATIVE OF KIER'S TOLD US RECENTLY THAT KIER WAS LEGALLY A SEPARATE ENTITY FROM REST OF THE GROUP. I GATHER THAT KIER ARE NOW IN PARIS HAVING DISCUSSIONS ABOUT JOINT VENTURE WITH BOUYGUES. COULD YOU LET ME KNOW WHAT DOE VIEW IS OF LEGAL POSITION IN CASE DISCUSSIONS WITH BOUYGUES ARE NOT SUCCESSFUL.
KINNEAR