(95)

Mr. Bean 28/12

7.

Saw

heutt-95

Ar. John Marden (q

Wheeloch Marden) yesterday

T

is Chariman of the Tunnel Co.

with the

the copy (below) of

Tunnel Co. from the

a

at his request. He

He

Letter

provided me

received by the

Hong Kong Goret.

2.

2.

There

Are

two points of

interest :-

()

Thu H.K. Gart

is not prepared to

meet the short fall of about Ith $120

in the equity and is luniting it's contribution to 25%.

seem (

and

St

would

this was No. Nardin's view)

that the offer of the H.K. Good. to

ostpone repayment of the cost of the

approach roads.

was

an attempt t

to

scale

down the equity to be

Subscribed at this stage:

Sure the Treasury

this acceptable.

5 am not

ECGD will find

This

would account

for about $12 m. of the shortfall.

The

remaming

$8

Nr. Marden

thought, could be found by

scrapping the prornion for Contingencies.

Again s

am doubtful about

Treasury Eca) reactions to this

?

manoeuvre.

(ii) The H.K. Gart.

not prepared to

Guarantee the loan

On

This

seems 10

Ecad

to

alihogh

1

conditions.

kill the project stone dead

must wait for details as

clearly we

to why the

H.K. Geol.

have reached

This decision

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