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CONFIDENTI AL
-2-
FROM THIS GOVERNMENT SEMI COLON I AM AWARE THAT THERE WAS A
SECONDARY CONSIDERATION RELATING TO THE COMMERCIAL RISKS
INVOLVED AND THE LOW RATIO OF EQUITY TO LOAN CAPITAL PROPOSED BUT THIS NATURALLY PLAYS NO PART IN THE CONSTRUCTION PUT ON THE REQUIREMENT BY PUBLIC OPINION.
4. I DO NOT KNOW WHETHER ANY FURTHER CONSIDERATION HAS BEEN GIVEN IN LONDON SINCE THE FRENCH OFFER BECAME KNOWN BUT I
WOULD URGE THAT THE MATTER SHOULD BE RECONSIDERED URGENTLY
IN THE LIGHT NOT ONLY OF BRITAIN'S COMMERCIAL INTEREST BUT
ALSO OF THE POLITICAL CONSEQUENCES I HAVE REFERRED TO.
5. THERE WOULD BE SUBSTANTIAL ADVANTAGES FOR HONG KONG IN
RESUSCITATING THE COSTAIN CONTRACT FOR THAT WOULD AVOID THE
DELAY AND POSSIBLE DIFFICULTY IN NEGOTIATING A SATISFACTORY
CONTRACT WITH DUMEZ SEMI COLON WHILE RATE OF INTEREST IS
SUBSTANTIALLY LOWER THAN THE FRENCH OFFER OF 8 PER CENT
INCLUDING ALL CHARGES)
SIR D TRENCH
FILES
HONG KONG DEPT.
FAR. EASTERN DEPT.
F.P. & A.D.
WESTERN EUROPEAN DEPT.
EXPORT PROMOTION DEPT.
SIR A. GALSWORTHY
MR. MORETON.
XXXXX
CONFIDENTIAL