100

CYPHER/CAT A

ROUTINE HONG KONG

TEL NO. EXCED 64

CONFIDENTIAL

TO EXPORT CREDITS GUARANTEE DEPARTMENT

28 MARCH, 1969

Tangor date mid-Mag.

105

scad han

ECAD submitted

Paisal inco

brad.

CONFIDENTIAL 1

FOR COTTERILL FROM HANNAM : TUNNEL.

MY TELEGRAM 256 TO CARTER.

Reed

THE DELAY IN SENDING THE GOVERNMENT' OFFICIAL REPLY TO THE TUNNEL COMPANY MUST PRESUMABLY CAUSE YOU TO THINK IN TERMS OF NEGOTIATING

AFTER EASTER RATHER THAN NEXT WEEK.

2. THE TUNNEL COMPANY ARE STILL THINKING OF BROTHERS AND SCALES AS. THEIR NEGOTIATING TEAM. THE HONG KONG GOVERNMENT TELL ME THEY WILL BRIEF SELLERS OF THEIR LONDON OFFICE TO SIT IN ON THE NEGOTIATIONS ON THEIR BEHALF. BROTHERS HAS SHOWN ME A DRAFT OF THE LETTER THAT HE WILL PRESENT ASKING FOR THE NEGOTIATIONS TO BE RE-OPENED. IT RUNS ON THE GENERAL LINES OF THE DRAFT I SENT YOU PRIVATELY WITH MY LETTER OF 8 MARCH EXCEPT THAT IT SPELLS OUT THE BANK'S POSITION ON THE GUARANTEE QUESTION (MY EXCED 59). THE BANK APPARENTLY DO NOT

VIZ LIKE THE SUGGESTION CONTAINED IN DICKINSON'S TELEGRAM EXCED 29, THAT THEY SHOULD BE TREATED AS A HONG KONG ENTITY. THEY PREFER TO GO BACK TO WHAT (I AM TOLD) WAS AGREED AS DEFINITION OF THE POLITICAL RISK GUARANTEE DURING THE NEGOTIATIONS OF TWO YEARS AGO. I WILL TELEGRAPH THE TEXT AS SOON AS IT IS DELIVERED TO ME.

SIR D. TRENCH

EXCED DISTRIBUTION

H.K.D.

AAAAA

CONFIDENTIAL

"1

10090

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