principle to provide 25% of the tunnel equity.
3. Against this background the Governor telegraphed on
8 January to emphasise the adverse political consequences which
would follow in Hong Kong if it were publicly demonstrated that the
French State owned bank and a French credit institute evidently
had more confidence in the future, both politically and economic,
of Hong Kong than had a British Government agency.
Impressed
by this argument, Lord Shepherd wrote to Lord Brown on 9 January
arguing that political considerations justified reconsideration of
the matter, in particular ECGD's requirement of joint as well as
several guarantees.