Dd.033009 Gp.863
CONFIDENTIAL
T
4.
NOTHING TO BE WRITTEN IN THIS MARGIN
the Contractors must assume by arrangement reached
between themselves and that this should be made
clear from the outset.
of a solutions on this basis cau to agreed, thew 6. We are not sure how H.M.C's responsibility we would supust that, situ
could be assumed. We understand that E.C.G.D.
could not be required to accept the risk with a
qual t
guarantee only half that which is required by
normal underwriting considerations, so that the
anagement
best way 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.
-Ner-ere we
to what
accounting arrangements would be required: H.M.G's
involvement in the project would be entirely on
could dr
political grounds. 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 bas-uok-sjek besu dawatek
booming and prosperous economy; the Colony does not
need financial assistance per se, but an act of
British faith in its future.
Take on lys
7
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The Hong Kong Government have not been sounded
about this proposal since we ware afraid of raising
may
* hopes which might prove to be false, we would tiko
We defuntely
so let them know as soon as possit whether they can
expect any assistance from H.M.G. sinee further-
delay could damage public fonfidence and may cause
___Costains to withdraw. I therefore very much hope
that an early solution these lines can be agreed.
8. I am sending a copy of this letter to Dickinson (E.C.G.D.), and to Saunders (Board of Trade) to Si A. Dudley (OSM)
CONFIDENTIAL