COMERCIAL – IN CONFIDENCE
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34/23/1
22 July, 1967
7/440
Dear Elliott,
You may like to have the enclosed copy of a letter and enclosures I have this morning received from the Tunnel Co.
2. I havo alɛo talked to Brothers on the telephone and it may be of use to you to know that although this exchange winCin virtually ensures that the tender teras will remain open until 31 August, there is considerable restlessness amongst the original shareholders in the Tunnel Co.
3. Obviously they do not understand the, to them, long silence after the ileng Kong Goverment's approach of 6 July.
As Brothers points out, it is no use thinking that the Hong Kong Government can be given a favourable decision from London on the last day of August and that all Kuch resins to be dona will proceed smoothly from thero. botwcon contractor and client that cannot be done until the Hong Kong Government has its own green light from you and They confirms the fact and extent of its participation.
are therefore most anxious to know as soon as possible mat is to happen.
4. One other small point that emerged in my telephone conversation was that Brothers, and presumably his directors, arc puzzled by intimations they have had from the liong Kong Government that same circles think the company is under- capitalised. Brothers himself is very keen to argue that this is not the case and that their gearing compares with
If you do feel strongly that of other large projects. about the capital structura perhaps it is not too late for Brothers you to give a clearer indication of your views. 1s adamant that nobody in London has said anything of the sort so far.
Perhaps,
5. I had thought that I was more or less out of this particular debate but it seems that I am still in. therefore, you could spare the time to give me an indication on how things are going and particularly what the view is on the use of Section 2. Michael Montague cane cut here with a somewhat weird bricfing to the effect that Section A had never before been used and was made to look rather foolish on this point on at least one occasion.
Yours sincerely,
LAST
J.. mliott, Esq., E.C.G.D.
(3. Thorne)
Acting Principal Trade Commissioner
COMMERCIAT, - IF CONGIDENCE