PRIORITY.

T.S.Carter

PRIORITY

Governor,

Hong Kong.

HWB.21/5

CONFIDENTIAL

14

Confiderial

(regial sent for dispatch

3/4

Căpied to:-

J.A.B.Darlington, C.R.E.Department.

R.S.Kinsey, General Division, Board of Trade.

C. C. Lucas, H.K.Treasury, Gt.George St.S.W.1. C.M. Drukker, E.C.G.D.

Hong Kong Tunnel.

As you know, Cross-Harbour Tannel 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 guarantee§.

2.

Claque also put these points to Snelling in Hong 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

remwal of requirement fad 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

Sec

kbàww, we

waived.

er no prospect that this requirement could be

13.

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