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Hong Kong by events. But if they continued to be what ECGD call "Hong Kong entities" then they would pursue them in Hong Kong to
ECGD also draws the reasonable the extent this is possible. parallel of pursuing enemy debts or debts in occupied territories after the war and this is what they would wish to be in a
position to do if circumstances necessitated it.
In our view
these revised terms are reasonable and we accept the arguments advanced in defence of their position in their tel. EXCED 29 to
the Trade Commission in Hong Kong.
3.
Recently, however, on top of French competition, the whole issue has been complicated by the entry into the field of an American financier (the Tom Mills Brokerage Company of
We have no firm Chicago) and an unidentified Swiss interest. knowledge of the terms these competitors are offering although the indications are that they would demand a higher rate of interest than ECGD but would not require among their financial guarantees those of the Hong Kong Government or the Hong Kong Shanghai Bank. In the case of the American Company, the claim made to a Press Conference by a representative of the Company itself in Hong Kong was that the period of the loan would be
20 years instead of 10 which ECOD are proposing.
4.
Against this background, the Treasury have been consider- ing whether we run any risk in insisting on a Hong Kong Government guarantee and in an attempt to be satisfied on this point, we asked Hong Kong for confirmation that they would be
The Governor's prepared to give their individual guarantee.
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