Dd.033009 Gp.863

NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

4

the Contractors must assume by arrangement reached

between themselves and that this should be made

set.)

clear from the outset.

6.

If a solution on this basis cau to agreed, then

We are not sure how HM Gle roepensibility- we would suffert mat, site

could be assumed. We understand that E.C.G.D.

could not be required to accept the risk with a

aqual t

guarantee/only half that which is required by

normal underwriting considerations, so that the

anagement

best way//w

would perhaps be for the Hong Kong

Government to give the 100% guarantee backed by a

public assurance from H.M.G. to the Hong Kong

Government that, in the event of the guarantee

having to be honoured, we would provide half the

sum involved. Nor are wo auté as to what

secounting arrangements would be required. H.M.G's

involvement in the project would be entirely on

political grounds.

could fr There is no question of it

falling under the head of aid since, as Kitching of

O.D.M. wrote to Lucas on 7 April, Hong Kong has a besuot–fekbeu dhamated-

booming and prosperous economy; the Colony does not

need financial assistance per se, but an act of

British faith in its future.

7.

We realise that the solution suppested

alın ismild br

a novel departure in our

dealings with our remaining dependent-teaïtories.

We

are

not afraid that, if we were & adopt

this solution for Hay kay, we shared I called

upon to extend similar treatment to other

teur mies.

We would not expect to come under

such an extension elsewhere; & Ÿ

such pussure for such an

we did, in should or pupared to resist it.

We

hope that in these circumstances you could

feel able to accept the proposal.

Time is und

short if the project is to be saved, & I should

be very (rateful therefore if you could let us have

your reply

as

faucet foon as

possible.

has

Lucas

attended meetups here & knows the background

fully. But if there is any further information you

to would like, I will cladly provide it; & if it

unuld help I will padly come over & table with

you about it.

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