164
OO HONG KONG
GR 165
CYPHER CAT A
FME C G D 13163CZ
CONFIDENTIAL
RECEIVED IN REGISTRY No. 51 17 JUL 1973
HKK21/LE
TO IMMEDIATE HONG KONG TELNO EXCED 35 OF 13 JULY.
FROM FELL TO ASTON.
PASS TRANSIT SCHEME.
п
фінь
H.K. 1.0D
F.R.D
WE NOW HAVE AUTHORITY TO AGREE THAT PRE-COMPLETION INTEREST MAY BE CAPITALISED AND REPAID ON THE SAME TERMS AS PRINCIPAL SUM. PLEASE CONVEY THIS DECISION TO FINANCIAL SECRETARY.
2. THIS DECISION IS ON CONDITION THAT THERE ARE NO FURTHER NET CONCESSIONS''. THIS MEANS THAT IF WE ARE ASKED FOR FURTHER CONCESSIONS ON FINANCING WE SHALL BE LOOKING FOR CONCESSIONS IN EXCHANGE SUCH AS EG INCREASED RATE OF INTEREST, WHICH WOULD RESULT IN NO NET INCREASE IN THE PREFERENCE INVOLVED IN THE FINANCING.
I SUGGEST THAT YOU CONVEY THIS TO FINANCIAL SECRETARY SEPARATELY POSSIBLY AS A NOTE GIVING BACKGROUND TO CONCESSION ON CAPITALISATION.
3. THE DECISION ON CAPITALISATION WAS TAKEN BY MINISTERS. THEY ALSO AGREED THAT COMPLETION OF FIRST FOUR STAGES SHOULD BE THE POINT AT WHICH REPAYMENT OF PRINCIPAL BEGAN. ALTHOUGH THIS WAS IN THE GROUP'S SUBMISSION IT HAD NEVER BEEN FORMALLY AGREED: THIS DID NOT MAKE CAPITALISATION DECISION EASIER. ALTHOUGH HONG KONG AUTHORITIES HAVE ASSUMED THIS COMMENCEMENT DATE, YOU MIGHT, AT DISCRETION, CONFIRM IT IF OPPORTUNITY OFFERS.
4VE ARE NOTIFYING KINDERSLEY OF THE ABOVE AFTER DESPATCH OF THIS TELEGRAP
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