Mr. Carter
CONFIDENTIAL
Возов
Hong Kong Tunnel
R&R
No. Stewart.
96
RECEIVED IN ARCHIVES
18
311
HKK 21/4
During my visit to Hong Kong I had discussions on
this with the Governor, Sir John Cowperthwaite, Mr. Clague
and Mr. Hannam. I think you will be aware of the up-to-date position, but I record the following.
2.
Although there were still doubts whether the Hong Kong and Shanghai Bank would accept ECGD conditions
Mr. Clague told Sir John Cowperthwaite he would find the extra 10 per cent if the Bank did not take up their share.
It was intended to propose to Executive Council that the Hong Kong Government should join with the sponsors on the above understanding and negotiate on the basis of ECGD's
latest offer.
3.
That
Mr. Hannam told me there was no doubt some political damage had been done through ECGD's variation in their terms. He complained that he had not been kept fully informed by ECGD and was therefore put in a very difficult position with
Sir John Cowperthwaite.
4.
Mr. Hannam raised a delicate issue in relation to the
prospective visit by representatives of the tunnel company to negotiatn in detail with ECGD. He said that on the last
occasion there had undoubtedly been a clash of personalities between Mr. Cotterill and Mr. Clague. Mr. Clague, who was
very much the no. 1 in Hong Kong, felt he had not been
properly received in ECGD and Mr. Cotterill had probably been tactless. Mr. Hannam hoped that we could ensure that Mr. Clague and any other representatives of the tunnel company were received at a suitably high level by ECGD with proper ceremony. A gesture of this sort would cost nothing but would go a long way to ease negotiations. This is a difficult point to put across, but possibly, when we know details of the
team's arrival, Sir A. Galsworthy might have a word with the
Secretary of ECGD who is, I understand, well known to him.
Johorel
J. O. Moreton) 14 March 1969.
Copy: Sir A. Galsworthy
CONFIDENTIAL
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