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claim by E.C.G.D. to be reimbursed sums which E.C.G.D. had to pay
in fulfilment of such a guarantee out of the assets of the Hong
Kong Government in the U.K. could be justified, unless the Hong
Kong Government had agreed with E.C.G.D. that in consideration
of their giving a guarantee to the U.K. banks, the Hong Kong
Government would make good any sum that E.C.G.D. had to pay in
fulfilment of such a guarantee.
3. For one Government department to give another Government
department an assurance on the lines proposed in these papers
amounts to no more than an expression of intention on the part
of the British Government; and for the reasons that I have stated
in the previous paragraph, the implementation of such an
intention could not, in the circumstances, be justified.
4. [As
As to that part of your draft letter which I have marked
I
with an 'X
}
it follows from what I have stated above that HMG
would probably not accept responsibility for any claims against
the Hong Kong Government and anyhow unless the Government of
Hong Kong is made a party to the proposal by giving some
guarantee to, or charge in favour of, E.C.G.D. there cannot
really be any question of the U.K. assets of the Hong Kong
Government being used to meet any claims by E.C.G.D. for
reimbursement.
Х
a.fi frattan. Beller
(A. Grattan-Bellew) 28th August, 1968
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