between the Government and the MTR Corporation?)
(b) I see that the Anglo/Franco/German consortium have
said that they can offer 12 years repayment, to
start after completion, an amount of credit which
looks at least 100% of offshore procurement, and
can match capitalisation of interest. So far as
the British element (GKN) is concerned, I should
tell you that they have no authority whatsoever
to offer any of these things. On the contrary,
they have been expressly told that they can expect
only normal ECGD terms and that all these four
concessions are exclusive to the all-British group.
(c) We have asked the Italian State Credit Institution
whether they are backing the terms offered by the
Italian Group. They have told us that they have
not yet even been approached by them. You may want
to probe this since, from experience on other projects,
we doubt whether the Italian Government would be
willing to finance a contract of this size.
"Finally, I note that your letter of 1 August to the British
Group does not refer to two matters
completion in 5 years,
to which you appear to
and minimising labour requirements
attach some importance. If you wish to press these points,
no doubt you will take them up in the discussions at the end
of the month.
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