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CONFIDENTIAL
14 February, 1969
64
54) 9
166
Cross Harbour Tunnel
I was most grateful to receive Dickinson's telegran Exced 29 and the F.C.0. telegram 119 about the tunnel question. This enabled me to demand a copy of the Governor's telegram 127 to Secretary of State, which had hitherto been withheld from me by the Hong Kong Government. I think it might perhaps be best if, before proceeding to an analysis of reactions to these recent telegrams, I sent you a copy of my letters of 31 January and 1 February to Clague, together with a copy of my letter of today's date to Clague paraphrasing your recent telegrams.
I have not prepared copies for the other addressees of this letter, but they can no doubt obtain them from you if they feel they need them.
2. The two telegrans have done a great deal to dispel misunderstandings here. Clague was obviously impressed with the emphasis placed in Telegram 119 on the commercial background to .C.G.D's. offer. I think that even Cowperthwaite in his canny Scots way is now much nearer believing that this is a commercial and financial question and not a political one. If Cowperthwaite is swinging towards this opinion then the Governor (whom I have not seen) will not be far behind him, and that is a great step forward.
3. I remarked in my Telegram xced 31 that my discussions with Clague have so far not been of great value because he has not had time to study the letter which I have sent him. On the emotional plane, however, he was considerably impressed and his first reaction was to say that recent telegrams had cleared the air a good deal. As the discussion progressed however the newspapers were brought into the office carrying headlines that the TOMMills Brokerage Company had announced in Chicago that agreement had been reached with the Tunnel Company to lend them money at 74%. This raised Clague's blood pressure as he had received no report from the emissary he had sent to Chicago only the day before. In answer to my question, however, he assured me that his emissary had had strict instructions that he was not authorised to conclude any agreement with the TOMMills Brokerage Company. He was only to obtain details of their offer.
K.. Cotterill, Esq.,
Export Credits Guarantee Department,
London, .C.2.
CONFIDENTIAL
1ST
$2
HEAT
RLF.
67