TNAG-1505-FCO40-2063-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 188

GRS 450

CONFIDENTIAL

FM PEKING

TO DESKBY 22100OZ DT!

TELNO INDUS 185

OF 220942Z SEPTEMBER 86

CONFIDENTIAL

FOR ALTY: FROM DAVIES

622

628

ник

160/1

OPY

TO

ZADEF 1985 O

ов

YOUR TELNO. INDUS 207 GUANGDONG NUCLEAR.

1. GEC (DAVIDSON AND ABRAHAMS) HAVE BEEN IN TOUCH WITH US SEVERAL

TIMES TODAY 22 SEPTEMBER. THEY HAVE THIS AFTERNOON INFORMED US THAT

IN THEIR VIEW PROBLEM HAS NOW BEEN SOLVED. AT MEETING THIS MORNING

JVC TOLD THEM THAT FURTHER DISCUSSIONS WITH BOC HAD LED TO A GRACE

PERIOD BEING BUILT INTO THE ONLENDING ARRANGEMENT BETWEEN JVC AND

BOC. THIS OBVIATED NEED FOR A GRACE PERIOD IN EITHER THE LOAN

AGREEMENT OR THE CONTRACT.

2. A CLAUSE HAS BEEN AGREED WITH THE JVC NEGOTIATOR AND HAS BEEN TRANSLATED INTO CHINESE (19.12(11)} BELOW. GEC BELIEVE THAT THIS

-

WILL BE ACCEPTED BY THE JVC.

3. FULL TEXT OF CLAUSE 19.12 AS FOLLOWS (NOTE SUBCLAUSE (11) IS THE CRUX). PLEASE PASS COPY TO KEN KNIGHT AT GEC TURBINE GENERATORS. GRATEFUL FOR CONFIRMATION DESKBY 23010OZ THAT SIGNATURE CAN GO AHEAD. MEETING WITH ZHAO ZIYANG AT 1530 IN ZHONGNANHAI FOLLOWED BY

SIGNATURE CEREMONY AT 1630 IN GREAT HALL OF PEOPLE .

BEGINS

19.12 IN ADDITION TO ITS RIGHTS UNDER CLAUSE 4.414, THE CONTRACTOR

MAY, BY WRITTEN NOTICE TO THE PURCHASER, SUSPEND THE CONTRACT: -

(1) IF, UNDER THE LOAN AGREEMENT, THE BANKER HAS ISSUED A TELEX TO THE BANK OF CHINA PURSUANT TO CLAUSE 14 THEREOF, NOT EARLIER THAN 21 DAYS FROM THE DATE OF SUCH TELEX, PROVIDED ALWAYS THAT THE CAUSE OF

THE CESSATION OF THE BANKER'S OBLIGATION TO MAKE ADVANCES SHALL NOT

HAVE BEEN REMEDIED IN ACCORDANCE WITH THE PROVISIONS OF THE SAID

CLAUSE 14 SO AS TO PERMIT ADVANCES TO BE MADE IN ACCORDANCE WITH CLAUSE 10 OF THE LOAN AGREEMENT., OR

(11) IF, UNDER THE LOAN AGREEMENT, THE BANK OF CHINA HAS ISSUED A

TELEX TO THE BANKER PURSVANT TO CLAUSE 9.7 THEREOF SUCH THAT IT

SHALL BE UNDER NO FURTHER OBLIGATION TO ISSUE ANY TESTED TELEX (AS

DEFINED IN THE LOAN AGREEMENT).,

(111) IN THE EVENT THAT THE PROTECTION PROVIDED TO THE CONTRACTOR BY

THE CONTRACT AGAINST NUCLEAR THIRD PARTY LIABILITY IS REDUCED,

SUSPENDED OR TERMINATED.

IF A SUSPENSION ARISING UNDER (1) OR (11) ABOVE OR CLAUSE 4.14

PERSISTS FOR MORE THAN THREE MONTHS THEN THE CONTRACTOR MAY, BY

WRITTEN NOTICE TO THE PURCHASER TERMINATE THE CONTRACT.

CONFIDENTIAL