VAMÉDIATH
EN CLAIR GPS 110
FB HONG KONG 2901302
UNCLASSIFIED
TO IMEDIATE ECGD TELNO UMNUMBERED CF 29 MARON,
DESKBY 29/15002
FOR COTTERILL FROM ASTON.
ASTON,
FA
78
2114 -12
NXKally гортосу
ECGD PLEASE COPY TO WATSON COPG) AND HISS WELCH (CRE 20 AND TO FCO (FOR STUART HKLOD AND FINAYSON EPD).
M.T.S.
FOLLOWING GARNERED AT MIGLO-FRANCO-GENIAN CONSORTIUM
COCKTAIL PARTY.
ONLY SRITISH TENDER SO FAR IS G.K.1, RaPRESENTED AT PRESENT TALKS BY HR H.BUCKLEK A CONSULTING ENGINEER,
FRANCO-GERMANS MERE PARTICULARLY ANXIOUS TO HAVE ADDITIONAL SUPPORT ON THE ELECTRICAL ENGINEERING AS DISTINCT FROM ROLLING STOCK OR CIVIL ENGINEERING, HENCE G.K.M.
30/15
GERMANS IN PARTICULAR HAVE ALWAYS FELT IT WOULD BE BETTER TO HAVE A KITERNATIONAL APPROACH AS THEY HAVE ON MANY OTHER LANGE CIVIL ENGINEERING PROJECTS AROUND THE WORLD, DECAUSE IT SPREADS THE POLITICAL RISKS AND STRENGTHENS THE CONSORTIUM IN DEALING WITH FOREIGN GOVERNMENTS.
THEY HAVE, THEREFORE, BEEN LOOKING FOR SOME TIME FOR WAY OF MAKING THIS A EUROPEAN. CONSORTIUM, THEY APPEAR TO HAVE MEANT THEIR EARLIER TENTATIVE APPROACHES VIA MUTCHISONS AND HE TO BE TAKEN HORE HEAVILY THAN THEY IMPLIED BUT HAVE NOT FOLLOWED THEN UP IN LONDON.
GERMAN SIDE OF CONSORTIUM IND MADE NO APPROACH TO HERMES UNTIL MID FESTUARY BECAUSE THEY COULD NOT FORMULATE A FIRM ENOUGH PROPOSITION. UNTIL THEY KNEW WHETHER THE SCHEME WAS ON DR NOT, AND WHO MIGHT BE IN IT WITH TTHEN. THEY APPEAR STILL NOT TO HAVE PRECISE TERMS FROM HERKES BUT HAVE BEEN ASSURED - AS THEY HAVE ALWAYS BEEN INFORMALLY -- THAT THEY HAVE FULL SUPPORT OF GERMAN GOVERNMENT WHO ATTACH IMPORTANCE TO THE PROJECT, THEY HAVE BEEN TOLD THAT GERMAN GOVERNMENT VILL NOT LET IT BE LOST SIMPLY OVER THE ISSUE OF THE LENGTH OF REPAYMENT. HOT CLEAR HOW FAR THEY WILL GO ON OTHER ASPECTS OF TERMS.
GERMANS IN PARTICULAR ARE PRESSING FOR A QUARANTEE. HADDON- CAVE HAS EXPLAINED THAT GOVERNÆENT WILL NOT GIVE A QUARANTEE, USING ARGUMENT THAT IN HONG KONG SPIRIT OF FREE ENTERPRISE THIS PROJECT MUST STAND CH ITS OWN VIABILITY, GERMANS STILL CANNOT REALLY SER THIS ARGUMENT AND STILL INCLINED TO PRESS FOR GUARANTEE. FRENCH AND GERMANS ALLEDGED THAT ACCORDING TO HADDON-CAVE'S DESCRIPTION OF ECGD TERMS, ECGD IS GIVING SPECIAL TERIIS NOT RELATED TO NORMAL COME- MRCIAL PRACTICE. SPECIFICALLY THEY QUESTIONED HOU ECGD COULD OFFER 10 YEARS AND NO GUARANTEE. I POINTED OUT THAT WITH ALL DRITISH GROUP OPERATING IN A BRITISH COLONY A GUARANTCE WOULD HARDLY SEEM NECESSARY GERHAN SANKING REPRESENTATIVE ARGUED THAT IN THAT CASE THIS WAS NOT AN EXPORT PUT A DOLESTIG MATTEL AND THEREFORE HOT APPROPRIATE TO COVER ECGD (THERE WAS SOME NUTTERINGS OF ''BREACH OF DERNE RULES''), I STRESSED THAT ECGD HAD TOLD FREICH AUTHORITIES FULL DETAILS OF Their THEMS WHEN THEY MERS REQUESTED, 1: ACCORDANCE WITH DERNE COVENTION. AND HAD MOT ALTERED THEM SINCE, IF GERLAND HAD NOT LEEN DERI TOLD IT BAS BIONUSE THEY HAD NOT ASKED, THE CERTINTO ACCEPTED THE POINT, THE FRENCHMAN WAS SURPRISED DECAUSE HIS AUTHORITIES COOPAS ETED AD MOT TOLD HIT: THE COGO TEPAS,