RESTRICTED

9

Mr. Carter

He said:

(a)

Kai Tak Extension

Mr. Steel of the Treasury rang me about my letter.

the Treasury were in principle in favour of pursuing the possibility of ECGD cover as likely to prove the easiest way out of an impasse;

(b) they proposed to await ECGD comments before replying; (c) they thought £6.2 million seemed a high export content

given the nature of the works; I explained that this was based on experience of ECGD;

(a) they supposed that if the project were put out to

international tender there was a likelihood that a

Japanese or other firm might win the contract and

offer as favourable credit terms as ECGD.

RESTRICTED

Говили

(J. O. Moreton)

22 May 1969.

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