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PRIORITY HONG KONG TO EXPORT CREDITS GUARANTEE DEPARTMENT
TELNO EXCED 31
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14 FEBRUARY, 1969
FOR DICKENSON FROM HANNAM. CROSS HARBOUR TUNNEL.
VERY MANY THANKS FOR YOUR MOST HELPFUL EXCED 29 AND ITS AMPLIFICATION
IN SECRETARY OF STATE TELEGRAM 119 TO GOVERNOR HONG KONG.
2.
COWPERTWHAITE IS OF COURSE HEAVILY ENGAGED WITH HIS BUDGET.
AT THE MOMENT, AND IT IS DOUBTFUL IF HE AND THE GOVERNOR WILL
BE IN A POSITION TO MAKE A DECISION BEFORE BUDGET WHICH IS
FEBRUARY 26. I HAVE NEVERTHELESS DICUSSED THE TWO TELEGRAMS
WITH COWPERTHWAITE ON THE TELEPHONE. HE CONFIRMED THAT THE FINAL SENTENCE OF PARA 1 OF GOVERNORS TELEGRAM 127 TO SECRETARY OF STATE CORRECTLY REPRESENTS THE HONG KONG GOVERNMENT'S
POSITION.
IN OTHER WORDS HE IS WILLING IN PRINCIPLE TO PROPOSE TO EXCO AND LEGCO THAT THE GOVERNMENT SHOULD GIVE A GUARANTEE
TO ECGD IN PROPORTION TO ITS SHARE OF THE EQUITY, ALTHOUGH HE
FEELS THAT A GOOD NUMBER OF DETAILS REMAIN TO BE SETTLED BEFORE
HE WOULD TAKE THIS STEP.
3. I THEN WENT TO SEE CLAGUE WHO WAS ACCOMPANIED BY VINE,
HIS LEGAL ADVISER.
OF EXCED 29 AND THE WHOLE OF SECRETARY OF STATES TELEGRAM 119. WE AGREED THAT THIS CLEARED THE AIR CONSIDERABLY. THE ENSUING DISCUSSION WAS NOT OF GREAT VALUE AS CLAGUE HAD NOT TIME TO STUDY THE FULL IMPLICATIONS OF YOUR TELEGRAMS.
I READ TO HIM THE GIST OF PARAS. 1 AND 2
4. I WILL PARAPHRASE THE APPROPRIATE PARTS OF YOUR TWO TELEGRAMS AND SEND THEM TO CLAGUE IN WRITING ON FEBRUARY 14. MY IMPRESSION IS, HOWEVER, THAT CLAGUE STILL HANKERS AFTER A CASH OFFER
FROM THE AMERICANS OR THE SWISS WHICH WILL ENABLE HIM TO DISPENSE
WITH COMPLICATED GUARANTEES AND SOON.
ST
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