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TUESDAY, AUGUST 20, 1974
FINANCIAL SECRETARY CONFIDENT OF JAPANESE INTENTIONS TO CONCLUDE MTR CONTRACT ******
THE FINANCIAL SECRETARY, MR. PHILIP HADDON-CAVE, TODAY EXPRESSED FULL CONFIDENCE THAT THE JAPANESE CONSORTIUM INTENDS TO CONCLUDE A CONTRACT WITH HONG KONG FOR BUILDING, EQUIPPING AND PARTLY FINANCING THE MASS TRANSIT RAILWAY WITHIN THE TERMS SET OUT IN THE LETTER OF INTENT.
IN A SPEECH TO THE ROTARY CLUB OF HONG KONG, HE SAID HE HAD +AMPLE GROUNDS FOR BELIEVING THAT THE CONSORTIUM HAVE NOT, AND ARE NOT, THINKING OF DEPARTING FROM THIS INTENTION.+
HE ASKED: +IF THE RUMOURS IN THE PRESS OF AN INTENTION TO WITHDRAW HAD ANY ELEMENT OF TRUTH IN THEM, WOULD NOT A WITHDRAWAL IN FEBRUARY, WHEN JAPAN APPARENTLY FACED WITH A SEVERE SET-BACK AS A RESULT OF THE OIL CRISIS, HAVE MADE BETTER SENSE?+
MR. HADDON-CAVE DISCLOSED THAT ANOTHER PLENARY SESSION WITH THE JAPANESE CONSORTIUM WAS SCHEDULED FOR THE BEGINNING OF NEXT MONTH - THE THIRD SO FAR.
IN PREPARATION FOR THIS MEETING, THE ENGINEERING GROUP OF THE MASS TRANSIT RAILWAY PROVISIONAL AUTHORITY HAD JUST RETURNED FROM TOKYO AFTER THREE DAYS OF TALKS ON THE PRELIMINARY DESIGN CRITERIA AND SOLUTIONS THAT HAD BEEN DEVELOPED IN RESPONSE TO THE PERFORMANCE SPECIFICATION,
TURNING TO+ANOTHER RUMOUR, THE FINANCIAL SECRETARY SAID HE HAD NO REASON+ TO BELIEVE THAT THE CONSORTJUN WOULD COME UP WITH SHODDY GOODS IN ORDER TO KEEP WITHIN THE PRICE CEILING, REGARDLESS OF THE DAMAGE THAT THIS WOULD HAVE ON THE REPUTATION OF THE MEMBER COMPANIES OF THE CONSORTIUM.
HE SAID THE CONSORTIUM MUST HAVE BEEN FULLY AWARE OF THE EFFECTS OF WORLD-WIDE INFLATION IN GENERAL, AND INFLATION IN JAPAN IN PARTICULAR, BEFORE THEY SIGNED THE LETTER OF INTENT.
+ IF THEY WERE NOT CONFIDENT THEN THAT THE JOB COULD BE DONE FOR $5,000 MILLION THEY WOULD HARDLY HAVE TAKEN THE DECISION TO PROCEED,+ HE SAID.
THE FINANCIAL SECRETARY ALSO GAVE AN ASSURANCE THAT THE PROVISIONAL AUTHORITY WOULD EXAMINE THE DESIGN SOLUTIONS AND THE PROGRAMME OF WORKS IN DETAIL +NOT ONLY TO DETERMINE WHETHER OUR PERFORMANCE SPECIFICATIONS HAVE BEEN MET IN FULL, BUT ALSO TO IDENTIFY WHETHER ANY OF THE DESIGN SOLUTIONS ARE LIKELY TO GENERATE UNACCEPTABLE EXPENSIVE OPERATIONAL AND MAINTENANCE COSTS.+
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