TNAG-0426-FCO40-472-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 44

Mr Stuart

COVERING SECRET

We spate.

letter which is

attacked 371A

ດ

1, Goodfellow

Illow

27

do you have the letter?

Aos 26/1300 mul

this came under à

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with the Dept. Whe

of write to the

Smeraer as he

agreed that you might mite, but it may be reun

revens of ant the letter. Syfol 20/12.

1. I have read the attached memorandum for Executive Council which Hong Kong sent us on the Mass Transit Railway Scheme. The point which has caught my eye is that relating to the force majeure clause (Annex E page 4 (g)). The outstanding question seems to be up to what rate the Japanese will accept that escalation is included in the fixed price and above what rate it is to be regarded as force majeure. If for example they now claim that escalation over 5 per cent was force majeure, then their bid would look very different in relation to the Anglo-Italian bid. We should keep an eye on this point.

18 December 1973

Supal

Youde

HKK adv

21/6

Mr

I agree. адже

There

are also other and paints in

it

the memorandum; C.3.

appears from

14 V (b) that

is also

the Angle | Italian credit terms

but the summing up in 18(c) mjesto the

ups in

He Hat statement in 20,

were better

than the Japanese,

opposite.

There

that the realisti

Anglo Illatian price

is

How do they

know this? But what is worrying about the whole

COVERING SECRET

He maximum.