1
;
رحها
بنا
OCMIAN 7525
CONFIDENTIAL
PP PEKIN
FM INDUS TO PEKIN
04122OZ APR
GRS 400
424
CONFIDENTIAL
Apara
27525
1
Pr
CONFIDENTIAL
FM DTI
TO PRIORITY PEKING
TELNO INDUS 82
OF 041220Z APRIL 86
INFO ROUTINE BTC HONG KONG, PARIS
нап Han 166/1
RECEIVED IN REGISTRY
1 1 APR 1986
WECK OFFICER
REGISTRY
INDER
PÄ
Action Taken
GUANGDONG NUCLEAR PROJECT
1.
FOLLOWING SIGNATURE OF LETTER OF INTENT ON 19 MARCH, BANK
OF CHINA TELEXED DTI/ECGD ON 27 MARCH WITH PROPOSALS FOR
RESOLVING A NUMBER OF OUTSTANDING ISSUES BEFORE L.0.I CAN BE
MADE EFFECTIVE. IF L.0.I IS NOT MADE EFFECTIVE BY 30 APRIL ITS
VALIDITY LAPSES. THIS TELEGRAM IS FOR BRIEFING PURPOSES ONLY,
THOUGH ACTION AT POLITICAL LEVEL COULD ULTIMATELY BE REQUIRED.
2.
THE MOST SERIOUS OUTSTANDING ISSUE CONCERNS BOC'S QUOTE
PRINCIPLE UNQUOTE THAT THEY SHOULD APPROVE ALL DRAWINGS FROM THE
LOAN, EVEN FOLLOWING AN ARBITRATION' AWARD TO GEC. THIS WOULD
IN EFFECT GIVE BOC THE RIGHT TO OVERRIDE THE ARBITRATION
PROVISIONS OF THE CONTRACT, WHICH ENVISAGE THAT BOTH SIDES ACCEPT
THE DECISION OF AN INDEPENDENT ARBITRATOR.
3.
ECGD HAVE NOW RESPONDED TO THE BỌC TELEX. ON THE
ARBITRATION POINT OUR REPLY READS AS FOLLOWS:- QUOTE: IN
RESPECT OF ARBITRATION CLAIMS WE MUST ASK YOU TO ACCEPT THE
INTERNATIONAL CONVENTION THAT AN ARBITRATOR'S AWARD MUST BE FINAL
1
CONFIDENTIAL