dad de Lad 44
3.
iv.
In
finance for the Japanese consortium. addition to finance from the Overseas Economic Assistance Fund, it suggests that the consortium hope to receive long term loans ai a favourable rate of interest from the Expo Import Bank. Should the Japanese Government give its support, the article speculates that this will make access to private funds relatively easier. The article however quotes an unidentified Ministry of Finance official as saying that because Hong Kong is not a developing area the question of whether to extend Government backed loans is still undecided.
The original article points out that in the last resort the position adopted by the Government of Japan, and in particular its assessment of the political attitude of China, will have an important bearing on the Japanese consortium's position.
While articles appearing in the Japan Economic Journal are often criticised by Japanese Government officials as being unreliable, it is probably the most authoritative of Japanese financial newspapers. We have not checked with Japanese Government officials the views attributed to them but they would appear to be in keeping with Japan's cautious approach to any project which might have a bearing on her economic relations with the mainland.
Copy to:
K W Cotterill Esq
ECGD
Department of the Environment
LC Watson Esq
OPG, DTI
Miss C Welch
CRE2, DTI
A Stuart Esq
HKIOD, FCO
PGA Wakefield
Minister (Commercial and Economic)
2.
COMMERCIAL IN CONFIDENCE