2.
de cover for the loan.
The
After lengthy and crux tivo
detailed discussions in which my Departments, your
Hicials Department, Treasury, and the Hong Kong Financial
Secretary were involved, agreement appeared to have
been reached on 27th October on the conditions
to be imposed. Then in a letter SL/CW/24126/35
pt 3 of 1st November from your Department, we were
informed that the agreed arrangement to the effect
that the Hong Kong Government should furnish the
guarantee to repay the loan in the event of any
default (by issuing an irrevocable authority to
their London Agents or Bankers to honour within
14 days of their due date promissory notes issued
by the Tunnel Company and bought by the lending bank
would be subject in additio to safeguards already
agreed, to provisos that:-
(a)
(b)
(c)
4.
in the event of any default at the fourteen
day point, ECGD would have the right to call
the whole of the debt;
world
ECGD have the right to pursue if the Hong Kong
Government account were to be removed from the
Crown Agents (i.e. the Govt's London agents).
ECGD require an undertaking that the Hong Kong
Government keep a minimum balance with the
Crown Agents or whatever London agents they
appoint.
I can well understand that reasonable
commercial prudence requires that ECGD should obtain
as reliable guarantees against default as it can
get.
In this case, however, I think the
Λ
that apart from the political overtones,
/Department
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