DIE
4.
The consulting engineers for the project are British
Scott, Wilson, Kirkpatrick & Partners and Freeman, Fox & Partners - and it is hoped that a contract for construction of the tunnel will be placed in May with Costains, with whom the Tunnel Company are now in detailed negotiation.
5.
Apart from the Hong Kong Government the remaining shareholders
are to be:-
Wheelock Marden & Company, Limited
Hutchison International Limited
The Hong Kong & Shanghai Banking Corporation
Kwon Wan Limited
Sir Elly Kadoorie Successors
All of them are Hong Kong companies.
6.
Negotiations for the financing of the tunnel have been protracted for a variety of reasons, mainly commercial.
E.C.G.D.,
in order to satisfy normal underwriting criteria, have had to press for adequate security for the guaranteed long-term loan, bearing in mind that the shareholders are only putting up 25% of the contract value. In the negotiations leading up to the agreement in principle on finance the shareholders finally agreed to guarantee loan repayments in proportion to their shareholdings, and other security including a floating charge on the company's assets has also been agreed.
7. The loan arrangements are purely commercial and the E.C.G.D. guarantee is being given in accordance with normal E.C.G.D. requirements. The business has been won against international competition and disclosure of the arrangements in detail might prejudice the further commercial negotiations currently in progress.
8. I am submitting direct because Mr. Moreton is preoccupied with the Anglo-Japanese talks. I am, however, copying this submission to him and to Lord Shepherd's Office.
али
1.5. Cart
S.
(W. S. Carter)
Hong Kong Department
30 April, 1969
Copies to:
Mr. J. O. Moreton Mr. C. H. Godden
Page 30Page 31
Ed (5084)
Mr. Carter