96
LETTER from Financial Secretary, Hong Kong to Chairman of the
Cross Harbour Tunnel Company, Ltd.
16 December, 1967
I am directed to refer to correspondence resting with your
letter of 30th November last and to inform you that the Government,
after carefully considering the present position regarding the
financing of the proposed Cross Harbour Tunnel, is prepared to
propose to the Legislative Council the maximum contribution from
public funds as follows :-
(a)
(b)
the contribution to the Equity capital of the Company
of 25% of the total equity up to the maximum of
Hong Kong Dollars 27.5m (excluding interest accruing
during the period of construction);
a sum of Hong Kong Dollars 12m (approximately) to be
spent by the Public Works Department on approach roads,
etc., to be repayable after the commercial loan of
£10m from Lloyds Bank has been repaid. 5
The interest charged on, and the repayment terms of, this loan
to be subject to negotiation. I am to emphasise that these
proposals are conditional upon approval of the Finance Committee
of the Legislative Council and that they represent a maximum
contribution from public funds.
I am further to say the Government is not prepared to
guarantee the Company's bank loan on the terms laid down by the
Export Credits Guarantee Department.
I should be grateful if you would inform me as soon as
possible, but not later than 31st March, 1968, whether or not
your Company wishes to proceed with the project on the foregoing
basis.
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