Mr. Carter
এই
CONFIDENTIAL
13m 30/4 th Casille be
3071 Registar for fle
be
Kai Tak Airport
When you and I called on Mr. Dickinson of ECGD this
After I had outlined
morning we were sympathetically received.
the state of play and our current thinking Er. Dickinson immediately made it clear that he was not prejudiced by the recent tunnel negotiations and that there would be no difficulty about a guarantee for the project. It was being undertaken by the Hong Kong Government alone and he was not worried about the
risks.
2.
Kr. Dickinson thought that in principle the scheme
This would give cover should be eligible for project credit.
for the whole contract but no credit terms for the non-UK element. There might be difficulties with the Treasury about the proportion of local costs but he was prepared to be tough. with them. The Treasury also normally insisted that local
There costs should be paid during the completion of the work. were plenty of precedents for construction projects such as dans and runways. In the case of dams the export content might
be of the order of sixty per cent and for a runway it might be forty per cent. If however the other improvements to the airport were included the percentage of export content should be higher than forty per cent. He advised that we should assess the export content for the whole £13.7 million scheme when they would bo very ready to look at the proposal in greater detail.
3:
On terms, Ir. Dickinson spoke of project credit at 6 per cent repayable within 5 years from the end of the construction period, or possibly buyer credit over a total period of 8 to 10 years.
4.
Mr. Dickinson suggested that we should get in touch with Mr. Ken Taylor of the Board of Trade Overseas Drojects Croup.
5.
I understand' that as a next step you will now be seeking an assessment with the Board of Trade of the export content of the whole scheme.
Coties: Sir A. Snelling
Sir A. Galsworthy
Ir. Gallagher
Totworl
(J. or Toreton)
29 April 1969
en CONFIDENTIAL
ss Brown/
davis.
R.C.
2/262/04