XN000022-1975-01-22 — Page 5

WEDNESDAY, JANUARY 22, 1975

JAPANESE CONSORTIUM'S HANDLING OF MTR NEGOTIATIONS CRITICISED

UNOFFICIAL LEGCO MEMBERS DEMAND JUST COMPENSATION÷

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UNOFFICIAL MEMBERS OF THE LEGISLATIVE COUNCIL ARE ALMOST UNANIMOUS IN THEIR CONDEMNATION OF THE JAPANESE CONSORTIUM'S +UNILATERAL BREACH OF THE LETTER OF INTENT TO NEGOTIATE A CONTRACT TO DUILD THE UNDERGROUND RAILWAY.

THE FEELINGS OF THE UNOFFICIALS WERE AIRED DURING AN ADJOURNMENT DEBATE IN THE LEGISLATIVE COUNCIL TODAY, WITH THREE OF THE FOUR SPEAKERS CRÍTICISING THE CONSORTIUM'S CONDUCT IN THE MATTER, AND DEMANDING JUST AND FAIR COMPENSATION FOR THE CONSIDERADLE LOSS OF TIME AND MONEY THE CONSORTIUM'S +SERIOUS ERROR OF JUDGEMENT+ HILL COST HONG KONG.

SPEAKING ON DEHALF OF MOST OF HIS COLLEAGUES, THE SENIOR UNOFFICIAL MEHDER, BR. THE NON, CHUNG SZE-YUEN DECLARED THAT THE GOVERNMENT WAS RIGHT IN NOT ACCEPTING THE CONSORTIUM' S +UNREASONABLE REQUEST, FIRST, FOR A NEVISED PRICE GEILING OF $5,000 MILLION TOGETHER WITH NEW PROVISION FOR PRICE

ESĜALATION, AND SECONDLY FOR A DEGRADED STANDARD OF DESIGN SPECIFICATIONS.+

THE MAJORITY OF THE UNOFFICIALS, HE ADDED, ALSO SUPPORTED THE GOVERNMENT'S VIEW THAT THE CONSORTIUM, TURÕUGH NO FAULT OF HONG KONG, HAD COMMITTED A SERIOUS ERNOR OF JUDGEMENT,

HOWEVER, THE HON. LO TAK-SHING CONSIDERED IT INVIDIOUS+ TO DEBATE OR TO LAY THE BLAME OF THE ABORTIVE NEGOTIATIONS ON ANYONE WITHOUT THE OPPORTUNITY OF STUDYING THE RELATED PAPERS, AND HE ASKED FOR ALL THE RELEVANT INFORMATION TO BE MADE AVAILABLE TO MEMBERS OF THE COUNCIL.

*WE SHOULD BE FULLY INFORMED AS TO WHAT WAS ACTUALLY AGREED IN THE LETTER OF INTENT, WHAT IT WAS THAT THE CONSORTIUM DID NOT DO WHICH IT HAD AGREED TO DO, HOW THE NEGOTIATIONS WERE BROKEN OFF AND WHAT WAS DONE BY THE CONSORTIUM DURING 1974 PURSUANT TO THE LETTER OF INTENT, HE STRESSED.

MR. LO SAID MEMBERS SHOULD ALSO DE FULLY INFORMED AS REGARDS THE AMOUNT OR THE KIND OF FINANCIAL LOSSES SUFFERED DY THE GOVERNMENT, THE AMOUNT OR THE KIND OF COMPENSATION WHICH THE GOVERNMENT IS ASKING FOR OR IS ENTITLED TO, AND ABOUT THE POSSIBLE BENEFITS THAT MIGHT HAVE AGGRUED WHICH PERSUADED THE GOVERNMENT TO TAKE THE RISK OF INCURRING SUCH! LOSSES WITHOUT BEING COVERED LEGALLY.

IN OPENING THE DEDATE, DR. CHUNG NOTED THAT THE GOVERNMENT WAS NOW DEING CRITICISED FÖR ACCEPTING THE JAPANESE CONSORTIUM'S PRE-EMPTIVE DID THE ONLY ONE WILLGH OFFERED A FÍRN PRICE WITHIN THE $5,000 MILLION CEILING PRICE WITHOUT ANY COST

*DUT THIS CRITICISM IS MISPLACED, HE SAID.

ESCALATION.

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