DEFENCE. DELIVERY OF EQUIPMENT ORDERED FROM FOREIGN FIRM.
Coiste um Chuntais Phoiblí.
With reference to paragraph 9 of the Committee’s report, dated the 26th February, 1953, I am to inform you that the equipment referred to therein has now been delivered. An offer by the contractor of a sum in respect of interest on the amounts advanced, as well as a claim for an increase in price under a price variation clause in the contract, is at present under consideration.
Coiste um Chúntais Phoiblí.
Further to my minute of the 30th June, 1953, relative to paragraph 9 of the Committee’s report dated 26th February, 1953, all the equipment referred to therein, except the spare parts, was delivered in May/June, 1953, and has been paid for. The original prices were increased in accordance with a Price Variation Clause in the Condition of Contracts, but the contractors agreed, as an extra-contractual concession, to allow interest at the rate of 3% per annum on the advance payments in respect of the period between the date on which delivery was originally to have been made, and the actual date of delivery. As regards the spare parts, it was considered advisable, in the light of the latest information available, to revise requirements, and a fresh order has been placed for delivery between June and October, 1954. The contractors have agreed to allow interest at the rate of 3% per annum on the portion of the original advance appertaining to the spare parts, up to the date on which delivery commences.
In all the circumstances, the terms of settlement with the contractors are regarded as satisfactory.