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Governor,

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Hong Kong.

649

Parly. U.S. of S.

Minister of State

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ENCLOSURES

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HKG.380

- 4 APR 1967

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DISTRIBUTION AND FURTHER ACTION

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J.A.B.Darlington,

C.R.E. Department.

R.S.Kinsey,

квот

General Division,

Board of Trade.

C. C. Lucas,

H.M.Treasury, Gt.George St.S.l.

St.S.j

C.M.Drukker, E.C.G.D.

RY 0839 5/4

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.1967 pex

0057

.Hrs.

Kazlair

As you know, Cross-Harbour Tumel Company are

considering tenders submitted. Clague has been pressing

Costains for improvement in proportion of contract price to

be covered by loan guaranteed by E. C.G.D. and for removal of

the requirement for joint and several guarantees.

2.

Ciaque also put these points to Snelling in liong Kong. The latter point was not however raised in subsequent letter

Clague sent to Lord Rhodes which has been referred to

Lord Brown in Board of Trade for reply. It has therefore been

be moval of requirement for assumed that question of guarantees from shareholders is not being pressed by Clague and we would not in any case wish to

encourage him to return to this point. for the reasons outlined

below, we see no prospect th t this requirement could be

waived.

ANS

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