Our reference: GD 4072/1
Your reference:
DL Hawkins Bsq
HM Treasury
Great George Street
London SW1
BOARD OF TRADE
Export Planning and Development Divizi on
1 Victoria Street, LONDON S.W.1
Telex:
66 Answer Back: BOTHQ LONDON Telegrams: Advantage London S.W.1
Telephone:
$
St.-27366
12 October 1970
ら
Hong Kay Dyk
12
BPD 17/10
Dear Hawkins
FINANCIAL GUARANTEES COMMITTER
CASE No. 903 - HONG KONG UNDERGROUND RAILWAY
1 I refer to Hooker's letter of 9 September, which I discussed with him on 8 October.
•
2.
It is clearly too early to consider in detail the terma ECGD might make available for this project; no firm preposition is likely for at least another six months. But it is perhaps worth saying now that, in view of the past history of the tunnel project, which soured our commercial relations with the Colony, an over-cautious response to any proposition that may emerge might well play into the hands of those who would not like to see the United Kingdom obtain a share of this business.
3. If this was generally agreeable, perhaps ECGD should let it be known that it cannot at this stage indicate what terms and conditions will apply until a firm proposition is received. If, as seems likely, the credit involved is considerable, then adequate security will be necessary. But if this is forthcoming, we are prepared to support a financial guarantee facility at the proper time. part of a bigger project, the prospects for our exports will increase; though we must remember that repayments will presumably have to be made well before the expiry of the lease from the Chinese in 1997.
Yours sincerely
(J H Clement)
If this is the first
CP Rawlings NJA Hover G M Lambert,
D A T Thain, J R Beaven, LC Watson, KC Price, P T Harding.
}
BC GD
Bank of Engla nå ODM FCO BOT, OPG BOT, CRE2 Min. Tech.
51
nded
BU 26-10-70
Af.
HICK21/8