HOFO 031/31
PP DOT
GR 630
CYPHER/CAT A
FM BTC HONG KONG 311039Z
RESTRICTED
10
HKK. 173/1
See 11
No
NO DISTRIBUTION
Top + Z DOT (CRE)
Day Riza Вир
1(
HK+GD PREDLO PUSA(2)
COMMERCIAL-IN-CONFIDENCE
TO PRIORITY D.O.T TELNO.CREDA 53 OF 31 JANUARY 78.
YOUR U/N CREDA OF 20 JANUARY: GKL VERSUS MASS TRANSIT.
1. I AM MOST GRATEFUL FOR BACKGROUND TO KIER'S POSITION WHICH HAS NOW BEEN AMPLIFIED BY LIVINGSTONE, THE RESIDENT GKL PROJECT DIRECTOR. THE DISPUTE REVOLVES AROUND THE INTERPRETATION OF AN AGREED CONCLUSION THAT IT IS CONFIRMED THAT CLAUSE 37A IS
KIER'S DEEMED TO COVER QUALIFICATION 1.5 OF THE TENDER LETTER''. ARGUE THAT THEIR QUALIFICATION WAS THUS ACCEPTED WITH ANY CLAIMS ARISING THEREUNDER BEING DEALT WITH THROUGH THE VEHICLE OF CLAUSE 37A. THE MTR ARGUE THAT ANY PRIOR QUALIFICATIONS CEASED TO BE APPLICABLE AND THAT CLAUSE 37A IS TO BE CONSTRUED AS IT STANDS. THERE HAVE BEEN A SERIES OF INCREASINGLY ACID EXCHANGES (AND AN ABORTIVE MEETING ON 30 NOVEMBER) RESULTING IN A DETERMINATION BY KIER'S TO SEEK A RULING FROM THE COURTS.
2. MOTT AND THOMPSON ARE NOW EYEBALL TO EYEBALL WITH NEITHER WILLING TO BACK DOWN ALTHOUGH BOTH WOULD PROBABLY PREFER TO AVOID RECOURSE TO LAW. MOTT'S LATEST LETTER TO THOMPSON CONTAINS AN OFFER TO REVISIT HONG KONG FOR A FURTHER MEETING. I HAVE SPOKEN TO THOMPSON WHO IS WILLING TO HAVE FURTHER DISCUSSIONS TO SEE WHETHER ANY KIND OF SETTLEMENT CAN BE REACHED. HE WILL BE REPLYING TO MOTT DURING THE COURSE OF THE WEEK.
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