WEDCJESDAY, JANUARY 22, 1975
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+THIS IS A CONSORTIUM OF THE DIGGEST JAPANESE INDUSTRIAL ENTERPRISES, KNOWN TO BE BACKED BY THE JAPANESE GOVERNMENT. FURTHERMORE, THE GOVERNMENT HAD NO ALTERNATIVE BUT TO ACCEPT THIS ATTRACTIVE BID, THE ONLY DID WITHIN THE STIPULATED CEILING PRICE.+
IN THE LIGHT OF RAPID INFLATION AT THE TIME, HOWEVER, DR. CHUNG SOUGHT CONFIRMATION THAT THE GOVERNMENT HAD SOUGHT ÄND RECEIVED ASSURANCE FROM THE CONSORTIUM ON QUESTION OF NO COST ESCALATION,
DR. CHUNG TRACED THE VARIOUS STAGES LEADING TO THE SIGNING OF THE LETTER OF INTENT AND POINTED OUT THAT THE SIGNING TOOK PLACE IN THE MIDST OF THE WORST PERIOD OF RISING PRICES AND SHORTAGES OF BASIC MATERIALS.. >AT THAT TIME, ANY COMPETENT BUSINESS- MAN WOULD HAVE TAKEN INTO CONSIDERATION THE MOST LIKELY EVENT OF CONTINUING RAPID INFLATION.
HE FURTHER POINTED OUT THAT THE LETTER OF INTENT WAS SIGNED ON A DATE MORE THAN FOUR MONTHS AFTER THE ANNOUNCEMENT OF THE ARAB OIL EMBARGO AND IN THE MIDST OF THE SPRING LADOUR OFFENCE' IN JAPAN.
DR. CHUNG ON BEHALF OF HIS COLLEAGUES, EXPRESSED CONCERN OVER THE $160 MILLION LOSS INCURRED BY THE GOVERNMENT IN ACTUAL SPENDING SINCE THE ACCEPTANCE OF THE CONSORTIUM'S PRE-EMPTIVE BID IN MID-DECEMBER 1973 UP TO MID-JANUARY 1975.
ON BEHALF OF HIS COLLEAGUES, HE URGED THE COVERNMENT TO CONTINUALLY PRESS THE CONSORTIUM FOR A MUCH MORE JUST AND FAIR COMPENSATION THAN THE $5 MILLION EX-GRATIA PAYMENT OFFERED BY THE CONSORTIUM. DR. CHUNG SAID HE COULDN'T AGREE MORE WITH THOSE WHO HAD DESCRIDED THE CONSORTIUM'S +RIDICULOUS+ $5 MILLION OFFER AS ADDING INSULT TO INJURY.+
FURTHERMORE, THERE WAS THE QUESTION OF THE INTERNATIONAL REPUTATION AND PŘESTIGE NOT ONLY OF THE PARTICULAR FIRMS CONCERNED BUT OF PRESTIGE OF JAPANESE CONTRACTORS GENERALLY.
+FROM THAT POINT OF VIEW ALONE, I WOULD HAVE EXPECTED THE CONSORTIUM TO OFFER COMPENSATION OF A SUM MORE IN LINE WITH THE EXTENT OF THE LOSS DIRECTLY ATTRIBUTABLE TO THE UNILATERAL BREACH OF THE LETTER OF INTENT.+
THE HON. WILSON WANG ENDORSED DR. CHUNG'S REMARKS AND SAID HE KNEW OF NO PRECEDENT WHERE ANY CONSORTIUM OF INTERNATIONAL REPUTATION HAS EVER DEHAVED SO ABOMINABLY AS IN THE CASE IN THIS INSTANCE.→
WHILE NOT A LEGAL CONTRACT, A LETTER OF INTENT WAS AN AGREEMENT COMMONLY MADE PETWEEN TWO PARTIES OF HONOURABLE STANDING AND SAVE FOR A BREACH OF GOOD FAITH OR AN ACT OF GOD BEYOND HUMAN CONTROL, IT IS NOT TO BE DISHONOURED WITHOUT THE MOST SERIOUS CONSEQUENCES,
HE SAID.
MR. WANG ALSO .....