ECGD
(1)
ROUTINE
TELEGRAM
()(a)
UNCLASSIFIED
RESTRICTED
(2)(b)
EN CLAIR
PRIORITY
BY
COMERCIAL
G.T.C. (See 3(b))
IN CONFIDENCE
IMMEDIATE
X
CONFIDENTIAL
X
SAVINO
*R CODE"
SECRET
X
CYPHER
Authorising
Officer K W CCTTERILI
Date 9.2.73
?
(4)
To 1-
Time
(5) Divisional
Reference
Executive
Group
(6) Buyer
(7) Telegram to Embassy or
Consulate or Trade Commissioner etc. at
HONG KONG
(8) Repeat to
For use of D.B.A.Ü.
Despatched
ON
AT
hrs.
BY
Please return duplicate copy to:
Export Credits Guarantee
Department,
59/67 Oresham Street,
London, E.C.2.
9905-xs
E.C.0. 788A (Revised Apc1). 1968)
(3) NAMES/WORDS TO BE ENCODED IN
0.T.C.
PRIVATE ADDRESS TELEGRAM
(9)
Messages-
or
For Aston from Cotterill
Your Christians 39 and 40. Mass Transit Scheme Capitalisation of interest.
Our own sources
tell us Japanese have not agreed to any deferment of pre-completion interest. If interest were capitalised or deferred the amount would be large (say HK 250m. up to completion of stage 2 only), and would have to be financed from other sources Complete waiver of pre- completion interest would amount to substantial subsidy, which nobody has so far suggested is
on offer.
2. Interest rates. Given present world rates anything below 6% would be aid. There are no rules about this but clearly understood
conventions as to what is commercial and what
is not.
3. Government strategy. We would rate Hong Kong Government chances of getting firm contracts financing for entire scheme as very small. There seems some risk of best being enemy of the good if they push this far.
4.
•
Fragmentation. We recognise Government's
views and their dilemma on this. It seems
crucial issue, on which please keep us as
closely informed as possible.
á
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