TNAG-0563-FCO40-658-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 219

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Contents of Talks

it would be prepared to make an ex gratia payment subject to the Provisional Authority agreeing

(a)

(b)

(c)

to accept payment as an ex gratia payment and not as compensation;

to set aside permanently such controversial issues as the Consortium's behaviour under the Letter of Intent;

to exercise their best endeavours

to ensure that there would be

no unpleasant consequences

for the member firms of the Consortium.

The Provisional Authority responded by saying that its acceptance depended largely on the amount of the payment. The Consortium offered approximately HK$5 million. The Provisional Authority was unable to accept this, on the grounds that it had already retired from a concept of total loss ($4-500 million), to a concept of actual expenditure incurred during the period of the negotiations ($160 million) to a concept of expenditure that could not be

recovered whatever decision is taken regarding the future of the project (approximately $40 million).

It

was agreed that the Consortium should reconsider its offer and to inform the Provisional Authority by 9.00 a.m. on Tuesday, 14th January 1975.

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