XPORT
CREDITS
KANTEE
DEPARTM
Dean Herald,
138
EXPORT CREDITS GUARANTEE DEPARTMENT
Aldermanbury House
Aldermanbury
London, EC2P 2EL
2 July 1973
мой
sto
HONG KONG MASS TRANSIT FROJECT
I attach a note on the position reached in discussions held last week in Hong Kong. Three points in respect of the export credit proposals require further comment:
a.. Starting point for repayment of principal:
The latest proposals put forward by the British Group assume that the starting point will be on completion of the first four stages. We pointed out to Lazards that this went beyond what we had so far agreed (i.e. repayment commencing at each of the first four stages) but I did not refuse to allow this proposals to go forward because:
i.
ii.
there is evidence which the Foreign Office can confirm that the Italian proposals provided from the start for the first payment to commence after completion of the first four stages;
the Japanese have told us (22 January) that payment would be made over 13 years after the six year completion period required for the first four stages. Nothing we have heard since they told us this has suggested that they have moved away from a credit period commencing on completion of the first four stages.
In the event:
iii.
(HK)
the Financial Secretary's staff told us that one competitor had offered better terms than final completion (i.e. including a grace period) while one other was on the same basis as the British bid and the third was worse than our bid. I believe that this statement can be relied upon as true;
i
R Jones Esq
H 11 Treasury
Great George Street London SW1
/iv.
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