SECRET
Registry HWB 21/5 No.
DRAFT
LETTER
Type 1 +
To:-
SECURITY CLASSIFICATION
TopSak
From
108
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aachtions.]
NOTHING TO BE WRITTEN IN THIS MARGIN
W(B)L 51-74 33
Secret.
Konfidential Restricted
molassifiedy
PRIVACY MARKING
In Confidence
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Plse Faci
Copy of (95)
Come of 96/E
(as relayed by Hannam
Lo
1574
C.C. Lucas, Esq.,
H.M. Treasury.
Telephone No. & Ext.
Department
17 April 19608
Hong Kong Tunnel
Cotterill has kindly provided me with a
copy of Hannam's letter of 11 March to which you
referred in your letter of 25 March.
2.
Until we received your letter we were not
aware that any fresh proposals were under
consideration, although we had reason to believe
that the Tunnel Company might make fresh
-
proposals in response to a letter from the Hong
Kong Government in December (a copy of which I
attach Annex A). The text of this letter
reached me through devious (Tunnel Company)
channels; I have no reason to doubt its
accuracy, although I believe the correct date
may have been 18 December. From Government
channels (Mr. Cowperthwaite) I received what
purported to be alternative proposals the Tunnel
Company had under consideration for submission
to the Hong Kong Government (copy attached
Annex B) with an oral indication that the Hong
Kong Government would find these unacceptable if
they were put forward.
3.
In my view the current proposals of the
Suggest Tunnel Company do indieate that there has been
some contact between the Company and the
Government. The reduction of the equity from
Hong Kong 110m. to $90m. presumably reflects
the effects of devaluation and the economies
noted in paragraph 4 of Hannam's letter.
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