CONFIDENTIAL
4.
7. E.C.G.D. will require to bo satisfied as to the torns of the loan
agrooment and the supply contract. This is implicit in H.M.G's undertaking
to share in the guarantco on a commercial contract otherwise acceptable to E.C.G.D. The points mainly concorn tho adequacy of provisions for tommination
of contract, arbitration in case of disputo, adcoquato dofinition of
responsibilitics and amounts involved, and the interlocking or compatibility
of the two contracts.
8.
Additionally, H.M.G. will wish to bo satisfiod that the terms are not
so onorous to the supplier as to be incapable of fulfilment or which could
only bo fulfilled at considerable hardship. As guarantors H.M.G. and tho
Government of Hong Kong have tho samo intorost in this rogard noither wish
to force the contractor into bankruptcy during construction. As sharoholders tho Hong Kong Governmont have slightly different interests and H.M.G. hopc
that in the former capacity the Governmont of Hong Kong will uso thoir
influence with the shareholders to secure reasonable torns.
CONFIDENTIAL