XN000022-1974-09-16 — Page 5

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MONDAY, SEPTEMBER 16, 1974.

STATEMENT ON H.T.R. NEGOTIATIONS

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A DELEGATION FROM THE MASS TRANSIT RAILWAY PROVISIONAL AUTHORITY, LED BY THE DIRECTOR OF PUBLIC WORKS, WENT TO TOKYO ON SUNDAY, 8TH SEPTEMBER FOR INFORMAL DISCUSSIONS WITH THE JAPANESE CONSORTIUM ON ENGINEERING, FINANCIAL AND INSURANCE MATTERS. THE DELEGATION CONSISTED OF REPRESENTATIVES OF THE PUBLIC WORKS DEPARTMENT, THE LEGAL DEPARTMENT, THE ECONOMIC SERVICES AND FINANCE BRANCHES OF THE COLONIAL SECRETARIAT, AND THE PROVISIONAL AUTHORITY'S FINANCIAL ADVISERS AND CONSULTING ENGINEERS. THE DELEGATION WAS JOINED LATER BY THE FINANCIAL SECRETARY AND ONE OTHER MEMBER OF THE PROVISIONAL AUTHORITY.

THE DELEGATION RETURNED TO HONG KONG ON SATURDAY, 14TH SEPTEMBER, AFTER A SERIES OF DISCUSSIONS WITH THE CONSORTIUM THROUGHOUT THE WEEK.

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THE DISCUSSIONS ON ENGINEERING MATTERS WERE THE THIRD IN A SERIES OF INFORMAL GROUP MEETINGS SINCE THE JAPANESE CONSORTIUM VISITED HONG KONG IN JUNE. THESE DISCUSSIONS, WHICH WERE CENTRED MAINLY ON A SET OF PRELIMINARY CONSTRUCTION CRITERIA DEVELOPED BY THE CONSORTIUM'S ENGINEERS, INCLUDED A USEFUL EXCHANGE OF VIEWS BETWEEN THE ENGINEERS FROM BOTH SIDES. THESE INFORMAL EXCHANGES. SHOULD HELP THE CONSORTIUM'S ENGINEERS TO FINALISE THEIR DETAILED DESIGN PROPOSALS AND SOLUTIONS. THE DISCUSSIONS ARE EXPECTED TO CONTINUE ON A REGULAR BASIS. THE MEETINGS ON FINANCIAL AND

INSURANCE MATTERS FORMED PART OF A SERIES OF INFORMAL DISCUSSIONS SINCE JUNE AND THESE ARE EXPECTED TO BE RESUMED IN THE NEAR FUTURE.

DURING THE WEEK, THE PROVISIONAL AUTHORITY DELEGATION HELD A ONE-DAY PLENARY SESSION WITH THE CONSORTIUM, MAINLY TO DISCUSS PROCEDURES FOR RECEIVING, EXAMINING AND NEGOTIATING THE CONSORTIUM'S PROPOSALS FOR THE MASS TRANSIT RAILWAY PROJECT, WHICH ARE EXPECTED TO BE RECEIVED IN THE NEAR FUTURE.

NOTWITHSTANDING THE DIFFICULT WORLD ECONOMIC CLIMATE

PREVAILING AT THIS TIME, BOTH PARTIES CONFIRMED THEIR CONTINUED DESIRE SUCCESSFULLY TO CONCLUDE NEGOTIATIONS LEADING TO A CONTRACT.

IT HAS PROVISIONALLY BEEN AGREED WITH THE CONSORTIUM THAT THE NEXT ROUND OF FORMAL TALKS AND INFORMAL GROUP DISCUSSIONS VILL BE HELD AROUND THE END OF OCTOBER.

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