TNAG-1512-FCO40-2070-Kowloon-Canton-highway-and-Kowloon-Canton-Railway-Corporatio-1986 — Page 187

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COSTS FOR THE EASTERN ROUTE WITH THE UNDERLYING ASSUMPTION THAT

EVERY EFFORT WOULD BE MADE TO INCLUDE BOCA TIGRIS. TH STILL

HAVE OVER POUNDS 100K AVAILABLE FROM THE ORIGINAL OFFER. WE

SEE WU'S OFFER OF THE BOCA TIGRIS AS A SIDEWAYS STEP FOR TH.

IF COSTAINS AND CHINESE CONTRACTORS ARE TO UNDERTAKE THE EASTERN

ROUTE THEN THERE IS NOTHING FOR TH IN THE EASTERN ROUTE. WE

THEREFORE NEED DIRECTION ON WU'S ACTUAL INTENTIONS, DIFFICULT

AS THIS IS CERTAIN TO BE.

SOLUTION

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OUR SOLUTION WOULD BE TO ALLOW TH TO USE UP THE REMAINING

OPF AND NOT TO OFFER ANY ADDITIONAL FUNDS UNTIL THERE IS A

DEFINITE MOVEMENT IN THE PROJECT. THE FUNDS TO BE USED EITHER

TO FORMULATE THE BRIDGE PROPOSAL WU'S OFFER TO A BRITISH

CONSORTIUM OR TO CHASE THE EASTERN ROUTE CONTRACT. THE ONLY

POSSIBILITY MAKING ADDITIONAL FUNDS AVAILABLE IS IF THE BRIDGE

CONTRACT IS CLEARLY TIED TO THE EASTERN ROUTE. TH INVOLVEMENT IN

THE ROUTE BEING AS CONSTRUCTION MANAGERS WITH COSTAIN AS

PROJECT MANAGEMENT, AND LOCAL CHINESE CONTRACTORS UNDERTAKING

CONSTRUCTION. THIS MEANS SEPARATE CONTRACTS FOR THE COMPANIES

IF COSTAIN/TH CANNOT GET TOGETHER, AS STILL SEEMS LIKELY.

CONCLUSION

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WU HAS SAID THAT HE IS WAITING FOR HIS FRIEND THE EX-

GOVERNOR OF GUANGZHOU TO BE APPOINTED AS TROUBLESHOOTER.

THIS

IS LIKELY SHORTLY, WITH AT LEAST A THREE MONTH INTERVAL BEFORE

HE CAN BEGIN TO SORT OUT THE PROBLEMS. WE INTEND TELLING TH

THAT AS THE PROJECT STANDS AT THE MOMENT WE ARE NOT WILLING TO

CONSIDER ADDITIONAL FUNDING. WE WILL HOWEVER REVIEW THE SITUATION

AFTER THE APPOINTMENT OF THE 'TROUBLESHOOTER' SUBJECT TO YOUR

COMMENTS.

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I AM SORRY THAT THIS IS NOT AN ENLIGHTNING TELEX BUT WE

SEEM TO BE BACK WHERE WE WERE MANY MONTHS AGO WAITING FOR

A POSITIVE MOVE FROM WU OR THE CHINESE.

I WOULD BE GRATEFUL FOR YOUR VIEWS ON THE ABOVE PARTICULARLY

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