(30)
14th June, 1967.
32
288.
Hong kong Tunnel
I have seen telegram from Hong Kong No. 833 of 13th June. hile I appreciate the considere tions mentioned by the Governor, I am f ly clear that as at this moment it ould be rong for us to proceed to finalise any offer of cover in respect of the Tunnel. Whilst I "pur ciate that an Grument can be made that the .C.G.D. nction requested could be re
"
in the n tional interest" I do not think that it is a proter interpret¬- tion of that phrase to suggest that ! C.0.D. should in possible default and finunc! 1 1958 in order to general political situation abroad.
If
•
V
Pe
de
*
Jvolve itself int-in 1 Aue to chept
Wald
uickly
In a trument
this kind of interpretation of the hris ten fing that 1.0.0.D. was as a Depatment being of political and diplomatic policy in } By Mich I never intended, and which would in practice be uiolatrous for an organis tion which is intended to be commsvetel fr to outlook. I think that the main consideration here is that ven if cover is to be iæ ued under Section 2, `.C.A.D. rust be
find about the credit-worthiness of the buyer. I do not think .t we could possibly argue should there be -ubae uent P.A.C. interest or criticion
buha ved reason::bly in mo. Laing this credit-wort. ineas whilst the curent criais persisted in Hong Kong.
-
that we hed
xtent of t is that
ing no
I E not wynting to carry this argument to the writing off the Tunnel project. unst I would the whole issue should be played slowly for the tim that the situation in Hong Kong la given time to uten down. Shoud this haren we would then be in position to review the whole project. I would & shume that in any event the Tunnel Company is itself doubtful about the wisdom of going forward with definite plans in present circumst∙nces. If this So then I
do not think that H.M.G. ne ds to agoniae unduly unleas or until we have an absolutely firm proposition from the Tunel Company.
Cories go to Sir A. Snelling (Co.. onwealth Cice) and Kinsey (Board of Tride).
LAST
RFF
30
BLA
Yours sincerely,
(3.C. Lucas)
K.?. Cotterill, Ear
•
Fxport Credits Guarantee Depart:.ent,
Barrington House,
59/67, Gresham Street,
E.C.2.