HOFO 027/30
PP D T 1
GR 480
CYPHER/CAT A
FM BTC HONG KONG 300944Z
CONFIDENTIAL
NO DISTRIBUTION
TOP +8 -80T
Hkx 121/616/1 0 5 +2
in
TO PRIORITY D.T. I TELNO.CREDA 292 OF 30 NOVEMBER 77.
зот
Kıza
TROD
de
260
PUSD (3)
PERSONAL FOR LIPPITT.
2601
.
POWER STATION PROJECT.
1. FOLLOWING ARE TEXTS OF TWO LETTERS ADDRESSED TO YOU BY
SIR LAWRENCE KADOORIE:
(A) BEGINS:
WE HAVE JUST HAD OUR FIRST CONVERSATIONS WITH ELECTROWATT, IN CONSEQUENCE OF WHICH I HAVE AUTHORISED THEM TO HAND TO YOU SECTION 4 OF THEIR FINANCIAL EVALUATION, BEING THE SECTION RELATING TO THE APPRAISAL OF COMMERCIAL TERMS.
MY BOARD CANNOT ACCEPT THE ESCALATION PROVISIONS IN THEIR PRESENT FORM AND WE TRUST THAT, IN THE LIGHT OF ELECTROWATT'S COMMENTS, A SUITABLE REVISION OF THE TERMS CAN BE MADE. FOR THE REMEDIAL ACTION DEEMED NECESSARY MAY I REFER YOU TO PAGES
45 AND 46.
WITH KINDEST REGARDS, SINCERELY YOURS, LAWRENCE.
ENDS
(B) BEGINS
HAVING HAD MORE TIME TO CONSIDER THE PROJECT IN DETAIL IT
HAS NOW BECOME OBVIOUS THAT GREAT CARE MUST BE TAKEN IN DRAWING UP THE CONTRACT BETWEEN THE COMPANIES AND THE SUPPLIERS, AND THAT EVERYTHING POSSIBLE SHOULD BE DONE TO AVOID CONFLICTS
DURING THE PERIOD OF CONSTRUCTION.