103
101
Dur reference:
r reference:
(104/5)
An
Treasury Chambers
- 2 AFR Great George Street, London S.W.I
elephone: 01-930 1234, ext.
HW B
2F45/54/01B.
LAST
REF
(101)
108
Dear Carter,
288
25th March, 1968.
Mr. Brown
I know nothing about this
new approach to Mr. Hannam. Cam Hong Kong Tunnel you get details (with copes of coreys.
from Mr. Gowess?
Lov
Tre 2613
from Ar Hannam) I was particularly interested to see Cotterill's letter to you of 23rd February, and the subsequent correspondence from Hannam of 11th March recording the latest approach by the Cross Harbour Tunnel Company Ltd.
On the face of it the Tunnel Company still appear to be interested in going ahead with this project. They imply that they have a certain amount of backing by the Hong Kong Government at any rate to the extent of an equity shareholding of $21 million. However, it is by no means clear that the Hong Kong Government has agreed about this, or is in any way a party to the new approach to the British Trade Commissioner.
Their approach makes it clear that there are still a very large number of loose ends. In particular, the question of guarantees is still completely open, and E.C.G.D. would appear to be in the position of being asked once again to take on a largely uncovered risk, certainly as regards the political situation.
Without wanting to prejudice anything which E.C.G.D. may want to say on the general underwriting front, it seems to me that there are inevitably very considerable difficulties ahead which will involve the Hong Kong Government as such. We should be very allergic to entering into a new round of discussions with the probability that the result would be as negative as those obtained following our previous discussions. I have spoken to Cotterill about all this, and he has agreed with me that it would be extremely useful if you could now as a matter of urgeney make contact with your people in Hong Kong to find out on an up to date basis exactly what position the Hong Kong Government either 4 or is likely to take up. I should emphasize that the arrangement under which H.M.G. was prepared to underwrite the Hong Kong Government as a guarantor to the extent of 50% was of course related to the particular circumstances of last year, and it is therefore important that the Hong Kong Government should be under no misapprehension that the offer still runs. I would hope that we can get some more general guidance from you before we encourage either the contractors, or the Tunnel Company to go in for further activities or expense which may have no productive outcome.
A copy goes to Cotterill
W.S. Carter, Esq.,
Commonwealth Office,
Curtis Green,
S.W.1.
(E.C.G.D.) and Gowers (B/Trade).
Yours sincerely,
مد
(C.C. Lucas)
Ken Cathnell promised to get a copy
seul over
al (opu
ai
2/4