(6)
(c)
and Costain's present offer, which is I gather 621 per cent.
Sowden thought that if (a) were settled
in this way, it might be desirable to have one year's delay before repayment of principal but not interest starts.
Sowden agrees with Clague that, in order
to clinch this contract, it will be
essential to have some modification of
the requirement for a joint and several
guarantee of all payments by the two major
participants in the Tunnel Company. For one thing this Company will have to unload part of its equity on to the public, and the Hong Kong Government and this share
thet
of the equity would be virtually unsaleable
were to be
if it is loaded with a joint and several
guarantee.
The Hong Kong Government impressed upon the
Commonwealth Secretary the importance to
Britain securing this contract if humanly possible. I know that its importance is fully appreciated by ECGD and the Board of Trade.
I hope that it will be possible to do something to improve Costain's offer in the general
direction desired by Clague. He assured me that there is a very fair chance of the contract
going to Costain provided they can improve
their financial proposals.
I am sending a copy of this letter to Morris
in the Board of Trade.