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French are having further discussions with the contractors. We have now had to tell the French that in these circumstances we could no longer refrain from informing our contractors of the new terms on which we would be prepared to see a loan extended; they did not object. We have therefore notified Costains and we have also told Hannam in Hong Kong and I attach a couple of paragraphs which you might care to include in a telegram to the Governor telling him where we stand.
3. In Cabling Hannam I have stressed the fact that we do not intend to enter into a competition in detail with the French which will have the effect of whittling down the security conditions. In particular, we do not propose to do without the several guarantees of any of the shareholders. In the past of course these have been offered and we hope that they will continue to be available whatever hopes the Tunnel Company may have of softer terms from the French.
keeen,
Досто
thullend
(K. W. Cotterill)