CONFIDENTIAL
21982
1
RESOLUTION OF THE OUTSTANDING ISSUES AND SIGNATURE OF A LETTER
OF INTENT, AND GIVEN THE EXCEPTIONALLY COMPLEX STRUCTURE OF THE PROJECT AND OUR COLLABORATION WITH THE FRENCH, THE UK SIDE HAS CONSIDERED WHAT FURTHER FLEXIBILITY CAN BE OFFERED WITHIN THESE
CONSTRAINTS. THIS DOCUMENT SETS OUT PROPOSALS FOR AMENDING THE
PRESENT POSITION WHERE THIS HAS PROVED POSSIBLE, AND ALSO
SPECIFIES THOSE AREAS WHERE NO MOVEMENT IS POSSIBLE.
4.
DETAILED DISCUSSION ON THE IMPLEMENTATION OF THIS REVISED
PACKAGE WILL BE REQUIRED BETWEEN THE PARTIES. NONETHELESS, AS A WHOLE, IN OUR VIEW THE PACKAGE SUBSTANTIALLY MEETS THE MAIN
CONCERNS EXPRESSED BY THE CHINESE SIDE, AND WE LOOK TO A
SIMILARLY POSITIVE RESPONSE TO PERMIT EARLY FINAL RESOLUTION OF
THE OUTSTANDING POINTS.
5.
FOR EASE OF REFERENCE WE TAKE POINTS IN THE ORDER SET OUT
IN THE BANK OF CHINA/JVC MEMORANDUM DATED 4 MARCH:
ROUTING OF DISBURSEMENT CLAIMS
1.2A
IN ORDER TO MEET THE BANK OF CHINA'S WISH TO
BE ASSOCIATED WITH THE QUALIFYING CERTIFICATE
ARRANGEMENTS, WE WOULD BE PREPARED TO SEE THE CONVENTIONAL ISLAND CONTRACT AND SUPPORTING LOAN
AGREEMENT AMENDED SO THAT THE BOC HAS THE RIGHT TO
COUNTERSIGN THE CERTIFICATE WITHIN THE 30 DAY PERIOD
ALLOTTED IN THE CONTRACT. IN THE EVENT THAT THE BANK
OF CHINA OR JVC DID NOT PROCURE PAYMENT TO GEC WITHIN
THAT PERIOD THE ENSUING MATTERS WOULD BE HANDLED IN THE
CONTEXT OF THE APPROPRIATE PROVISIONS OF THE CONVENTIONAL
ISLAND CONTRACT AND CLAUSE 3.9 OF THE DRAFT LOAN
AGREEMENT. SIMILAR PROVISIONS COULD APPLY TO OTHER
UK CONTRACTS ARISING UNDER PARAGRAPH 2.2A BELOW.
B
WE HAVE NO OBJECTION TO THE USE OF SIGHT
DRAFTS FOR DIRECT PAYMENTS BUT THEY CANNOT BE APPLIED
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CONFIDENTIAL