CONFIDENTIAL

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good represented by their head, Mr Fell, could say that we would

consider it urgently. In view of the cost, however, Mr Fell should not make this offer unless he decided that it was essential.

6. I think this agreement was adequate. We do not have sufficient evidence to insist on a unilateral offer to capitalise interest which would greatly increase the cost of the credit. All the evidence is that we are ahead on credit terms both of the multi contract approach and of our consortium rivals. The Hong Kong Government's main concern is to get a price from the consortium. No improvement of credit terms will avoid this. Mr Fell's position at the Hong Kong talks will essentially be a back-up one. The main burden will be on Mr Kindersley and his consortium colleagues.

19 March 1973

Copy to:

Fest

A C Stuart

Hong Kong & Indian Ocean Department

This

seems

cam

only

very fair

he

durait the outcome

of the consortion v. multi

Com fract

battle now.

Kun wilfro

%/%

Sir E Norris Mr Whitehead Mr Finlayson

EPD

Sir D Watson Mr Kerr

FRD

With copy of Mr Logan's minute of 16 March.

CONFIDENTIAL

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