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EXPORT CREDITS GUARANTEE DEPARTMENT
S
21 DECEMBER 1968
TELEGRAM NO. EXCED 129
CONFIDENTIAL
ADDRESSED E.C.G.D. TELEGRAM NO. EXCED 129 DATED 21 DECEMBER
REPEATED FOR INFORMATION TO C.R.E.D., BOARD OF TRADE AND FCO.
FROM TRADE COMMISSIONER: CROSS HARBOUR TUNNEL.
REFERENCE MY EXCED 128 I HAVE NOW SEEN COWPERTHWAITE, THE FINANCIAL SECRETARY, WHO HAD APPARENTLY BEEN PROMISED A COPY OF THE FRENCH
TELEGRAM BUT HAD NOT RECEIVED IT WHEN I SPOKE TO HIM.
2, HIS FIRST REACTION WAS THAT THE LEGISLATIVE COUNCIL WOULD HAVE ·
TO EXTEND THE FRANCHISE OF THE TUNNEL COMPANY, THE FRANCHISE AT
PRESENT ENVISAGES COMPLETION OF THE WORK BY 1970. COWPERTHWAITE
REMARKED THAT THE EXTENSION MIGHT MEET WITH SOME OPPOSITION IN THE
LEGISLATIVE COUNCIL FROM THOSE WHO ARE FED UP WITH THIS LONG
DRAWN OUT SCHEME,
3. I ASKED ABOUT THE HONG KONG GOVERNMENT'S ATTITUDE TO THE FINANCES
OF THE SCHEME, AND ESPECIALLY TO CONTRIBUTING THEIR 25 PERCENT OF
THE EQUITY. HE REPLIED THAT THE SHORTER TERM AND HIGHER INTEREST
RATE I HAD MENTIONED TO HIM WOULD NECESSITATE A RE-ASSESSMENT BY THE
HONG KONG GOVERNMENT OF THE VIABILITY OF THE SCHEME AS A WHOLE. THEY
WOULD, OF COURSE, HAVE TO SATISFY THEMSELVES AS TO THE FINANCIAL SOUNDNESS OF THE OTHER EQUITY SUBSCRIBERS.
4. ENQUIRED WHETHER THE HONG KONG GOVERNMENT SAW ANY POLITICAL
OBJECTION TO THIS CONTRACT GOING TO THE FRENCH AND WAS TOLD THAT THEY DID NOT (REPEAT) NOT.
1
5. COWPERTHWAITE TOLD ME IN CONFIDENCE THAT THE GOVERNMENT HAD BEEN EXAMINING THE CASE FOR THEIR TAKING OVER THE FRANCHISE FROM THE COMPANY, BUT HE IMAGINED THIS LATEST AND SURPRISING NEWS HAD RENDERED THAT AN ACADEMIC EXERCISE.
6. ALTOGETHER I GAINED THE IMPRESSION THAT COWPERTHWAITE SAW NO INSUPERABLE OBJECTIONS TO THE TUNNEL COMPANY GIVING SOME SORT OF
LETTER OF INTENT TO THE FRENCH IN THE FAIRLY NEAR FUTURE.
FCO PLEASE PASS PRIORITY ECGD AND BOARD OF TRADE.
SIR D. TRENCH
/COPIES SENT TO B.O.T.
EXCED DISTRIBUTION
HONG KONG DEPT.
NNNNN
CONFIDENTIAL
7
RECEIVED IN 1
ARCHIVES No.3 31 23 DEC-1968-3
HKCK 21/4