prjong a
C.S. 166
XCS(75) CONFIDENTIAL **
(a) that the Consortium has agreed to pay adequate
compensation; and
(b) that the Government is to proceed with an
underground railway in another manner.
As regards (a): the Consortium has agreed to give its final response by next Tuesday morning and a report will be made orally to Honour- able Members. As regards(b): the Mass Transit Railway is still required and a Modified Initial System has been developed. As a single-contract approach is no longer realistic, it is proposed to proceed with the Modified Initial System on the basis of a multi- contract approach. When tendered prices and the amount and terms of export credits are known, it will be possible to confirm the overall financial viability of the project.
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It is regretted that Honourable Members have been given a very short time to consider this memorandum, but the negotiations on the question of compensation have been proceeding up to the time of issue. Nevertheless it is imperative that the announcement of the Japanese Consortium's withdrawal should indicate what action is being taken in the light of changed circumstances. To remove uncertainty it is necessary to say that the Provisional Authority is proceeding with a Modified Initial System and adopting a multi-contract approach, the details of which will be announced. For this purpose two draft Press Releases are at Annexes E and F, one of which will be issued at an appropriate time depending on the final response on the question of compensation.
Advice Sought
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Accordingly, Honourable Members are invited
(a) to note the history of the negotiations with the
Japanese Consortium (paragraphs 4 to 10);
(b) to advise that one of the two draft Press Releases at Annexes E and F should be issued depending on the final response of the Japanese Consortium on the question of compensation;
(c) to note the arguments for continuing with the
Railway (paragraphs 11 to 17);
(d) to advise whether the Mass Transit Railway
Provisional Authority should proceed with the Modified Initial System, as outlined in para- graphs 18 to 22 above, on the basis of a multi- contract approach as proposed in paragraph 28; and
(e) to note that, when the results of initial representative
tenders and the availability and terms of export credits are known, their confirmation will be sought that the contracts should be let.
CONFIDENTIAL
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機密
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