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1st LD-Writethru: China Railway calls XpressWest breach of contract "mistake"

Xinhua, June 10, 2016 Adjust font size:

The China Railway said on Friday that the Las Vegas-based XpressWest's unilateral cancellation of a high-speed railway contract with its subsidiary is "a mistake" and "irresponsible."

The U.S. private company said on Thursday that it had "terminated its joint venture activities with CRI (China Railway International U.S.A., Co.Ltd.) regarding high-speed passenger rail" between Las Vegas and Los Angeles.

The China Railway said in a statement that the U.S. company had breached a cooperation agreement by unilaterally announcing the termination. It opposed the U.S. company's decision and has been dealing with the case according to law.

In September last year, XpressWest and CRI announced to establish a joint venture to build the Southwest Rail Network that will connect Las Vegas, Nevada and Los Angeles in California.

The two sides planned to start construction on the 370-kilometer line in September 2016 with an initial investment of 100 million U.S. dollars. Endi