itw B 12/5.
2 Extra coppies
I for CC Lucas by. Treading
I for KW Cate will tom. ECCD.
3N
SAVIO DESPATCH TO THONG KONG
233
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V 196?
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мст
My telogram No.1130 and your No.1344.
Cross Harbour Tunnel.
You will be aware that during a recent
visit to London of your Financial Secretary and
other officials discussions were held on the
terns wherounder E.C.G.D. are prepared to grant
covar for the loan of £10 million from Lloyds
Bank for the Tunnel project, and whereunder H.M.G. subject to Parliamentary moval
can become associated in the required guarantee.
As a result of these discussions the following
terms have been formulatedı-
(a) The Hong Kong Governmont should guarantee
ropayment of the £10 million loan plus
interest by the Tunnel Company on the
appointed dates, making good any failure
or deficiency whether occasioned by
political, technical or operational
causes.
(b) The Hong Kong Government should furnish
this guarantee by issuing an irrevocable
authority to their London Agents or
Bankers to honour within 14 days of
due date
their presente
Promissory Notes
issued by the Tunnel Company and bought
by the leading Bank.
/(o) 1.C.G.D. will