97
Our Reference: 2F45/54/01
Your Reference:
Treasury Chambers
M' Carter
Mr. un mara
Great George Street, London, S.W.I Telephone Whitehall 1234, ext.
9th May, 1967.
ex
Mr. Kerys. Im
288.
125
11/5-
(23)
Hong Kong Turnel
I did briefly discuss ith you Ford's letter of 28th April bout the Hong Kong Tunnel. His sustion was that it might be poible for Cost ins to obtain a perfomance bond by using the good ɔfii of the C ty. THES ould enable the "isk in rep.ct of performance to be taken entirely from E.C.G.D.' shoulders, and leave only the roblems associ ted with payment after completion.
e both thought that this 998 an ɔ▼ r-simplification of the “ctual ci tua tion at the moment. Your in conc rn i... with the
untee which will continue to be available from the p rt.cipting companies in the period after com, letion. In particular they have chimed that their, u ranten should be r‹ duced once the public is invited to sh. re in the e uity shareholding. This 18 of course entirely a port completion problem, and I understand that you hoping to solve it by zeinu of a sinking fund technique.
gu
re
As re, rds the ;- rformance risk, it i. not come ti:ing which E.C.G.D. would nor ll expect to cover, and under a financial
ntee it is usual for the buyer to be exp.cted to accept the prformance risk on to tie up the plier in an appropriate my which does not af.ct the form of the finincial unrantee. Another complic tion is th t ring the completion period ve re not conced only with performance risk, but 100 ith the political risk and
1th the risks involved when ~ unts are drawn by the ovɩrseng tuyer in advance of completion.
Nevertheless the idea of using circumst nces is, I think, wel. Fort un erstand that you any wish to take leisure with vier to ci ing potential advante in assumption that the ong
b
other means,
#1
I
Copies go to Ford Kitening (...) and 91
ther
Kong
W111
performance bonds in ap, coprite
considering further. I
thi: uestion up at greater ther the techni ue would be n
This 18 of course on the
t
(D...), Moon A. Shelling (C
Your. M 44C
ruly
ing to be capable of solution be the case
(F.0.), Ryan (nk of Bgld)
ɔnwelth Office).
K.. Cotterill, Be..
Export Cr d. to 3u ntre D
P.O. Box 272,
Berrington House,
59/67, Gr Fam Str
E.C..
(C.C. Luca.)
∙tent,
LAST
23
REF
RECEIVED IN ARCHIVES No. 63
HLB 21/5