CONFIDENTIAL
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(c) on paragraph 11(e), the British Group had all along
envisaged that ECGD credits would be repaid by semi- annual instalments of equal principal plus interest
on the outstanding balance; and
(d) it must be remembered that some of the figures in
paragraph 19 represented estimates made by the-MTSG rather than by the British Group.
"Requirements to be Met"
14. The British Group also confirmed that the MTSG's under- standing of their position vis a vis each of the Government's- requirements was generally correct, subject to the following observations:
(a) as regards requirement I(b), the British Group did
have the capability to undertake detailed design, although they did not propose to assume responsibility for the detailed design of civil works;
(b) on requirement I(e), Lazards would naturally hope to
be included in the financial management/advisory group, but did not insist on being included;
(c) the British Group's position on requirement II(a) must
be qualified: although the British Group had proposed to set up a separate company in Hong Kong as a single legal entity for the purpose of entering into the contract, the company would have limited liability and minimal capitalisation, and true joint and several liability of the British Group's members would extend only to the limit of the capitalisation; there would be several liability, backed by separate guarantees, in respect of E & M supplies on the one hand and civil engineering works on the other;
CONFIDENTIAL
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