CONFIDENTIAL
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AND BINDING ON THE CONTRACTING PARTIES AND THERE SHOULD BE NO REASON FOR ANY OTHER PARTY TO STOP, DELAY OR REDUCE THE AWARD. CONSEQUENTLY, IN RESPECT OF ARBITRATION AWARDS IN FAVOUR OF THE CONTRACTOR WE WOULD BE PREPARED FOR BOC TO REVIEW AN ARBITRATION AWARD WITHIN 30 DAYS OF THE AWARD BEING PRESENTED AS A DISBURSEMENT CLAIM PROVIDED AT THE END OF THAT PERIOD THE PARTY TO WHICH THE ARBITRATOR HAD MADE HIS AWARD RECEIVED WHAT WAS DUE TO HIM IN FULL AND WITHOUT DELAY OR CONDITIONS UNQUOTE.
4. WE HAVE THUS GIVEN BOC THE RIGHT TO REVIEW IN A FORMAL SENSE, BUT NOT IN ANY WAY TO INTERRUPT THE ARBITRATION PROCESS. GIVEN HOWEVER THAT BCC HAVE STATED THAT THEIR RIGHT TO APPROVE ALL DRAWINGS IS A PRINCIPLE, IT IS NOT CLEAR WHETHER THIS WILL BE ACCEPTABLE. BUT THE PRINCIPLE AT STAKE IS IMPORTAINT FOR US TOO, WITH REPERCUSSIONS ON OTHER POTENTIAL BUSINESS IN CHINA. WE MAY THEREFORE WISH TO TAKE IT UP AT POLITICAL LEVEL IF WE CANNOT
REACH A SATISFACTORY CONCLUSION WITH BCC.
5.
GRATEFUL IN THE MEANTIME FOR ANY COMMENT OR ADVICE YOU MAY
HAVE IN HANDLING THIS ISSUE.
GUANGDONG
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