TNAG-1642-FCO40-2289-Public-finance-in-Hong-Kong-Supplementary-Appropriation-(198-1987 — Page 210

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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Date:

Time:

Reporter:

26.11.86

8.30 12.15 p.m.

MEP

any compensation from the contractor?

D of Ar. S: As in paragraph 144, the response to Director of Audit, we already explained that there have been

mitigating circumstances as far as the contractor is concerned,

(a) because he requested guidance with negative responses as it were and also he is allowed to proceed without challenge, and in the circumstances, it was therefore considered that the proceeding against the contractor would be very difficult to be successful. Nevertheless, the contractor is deducted part of in other words agreed to share

--

part of the blame and money deducted from them, and don't forget

at the time, the sub-structure contractor

——

we are dealing with

the sub-structure contractor we already had the super-structure contractor on site. Work was progressing and we have to deal with the situation as quickly, as practically, as cheaply as possible, so that we don't get ourselves into a more difficult situation

with the super-structure. I think this is

MR CHUNG:

To take action is one matter, to have mitigating factors is another. I don't know whether the deduction of money

from the contractor would be sufficient to cover all the losses

suffered by the Government.

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D of Ar. S:

That is true, but the only way to pursue

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that situation is to go to arbitration.

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MR CHUNG:

Yes. There is another question about

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whether the waterproofing works scheduled to start in the late 1986 will resolve the water leakage problem in the future.

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D of Ar. S:

It will. It will resolve the water

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leakage problem in the future.

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MR CHUNG:

But you mentioned that there is no

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