CONFIDENTIAL
the Gu gdong project is essentially a joint venture, and
the PRC is likely to insist on shared liability as part of
the price for preferring supplies from the UK. If this
price has to be paid we should aim to get the PRC to accept:
(a) that the operating company should have strict
(b)
liability up to an agreed limit: British contractors
should not be liable;
that the PRC Government should accept all residual
liability for damage within the PRC. In return, no
claim would lie against the PRC Government in respect
of damage in Hong Kong.
These arrangements should be set out in a bilateral agree-
ment between the PRC and the UK.
CONRI INVENUTTAT