TNAG-0563-FCO40-658-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 209

0003160 G.F. 316

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(a)

(b)

(c)

-- 2 -

unreasonable restrictions or delay on the part of Government in making the necessary land and subterranean rights available, or in giving any necessary approval or consent to commerce or carry out any works in accordance with an agreed programme, or

major variations or additional or extra works ordered in writing by Government, or

Force Majeure and/or special risks as hereinafter

defined.

It is agreed that the maximum ceiling price of YEN255,600 million offered by the Consortium and calculated at the merchant selling exchange rate in Hong Kong on 1st October, 1973 (equalling HK 4,998.26 million) came within the required maximum ceiling price. However, for the purposes of the Formal Contract, payments to the Consortium may be made in both Yen and Hong Kong Dollars and the currency mix, the currency or currencies in which the contract price is specified, the fixing of appro-- priate exchange rates and the effect of material fluctuations in exchange rates are matters to be discussed and agreed in the negotiations for the Formal Contract.

6.

The final definition of Force Majeure will be negotiated and agreed between Government and the Consortium in accordance with international practice and will be stated in the Formal Contract. While it is agreed that Force Majeure shall not include unforeseen circumstances, it is also agreed that the definition in F.I.D.I.C. (which has been discussed between the two parties) requires to be widened to cover :-

(a)

certain extreme acts of nature which the

Consortium could not reasonably have foreseen, or

international economic disasters, or

(b)

(c)

interruptions to normal economic activities caused by widespread strikes, or

(a)

prolonged breakdown of essential water or electricity services in Hong Kong,

which have a substantial bearing on the Consortium's ability

to fulfil its obligations under the Contract.

7.

The Consortium agrees that, in no circumstances, must the maximum ceiling price be exceeded on account of adverse physical conditions encountered by the Consortium.

8.

Government agrees to hand over to the Consortium all available technical data and other relevant information and

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