GAS 148
RESTRICTED
CYPHER/CAT A
FM WASHINGTON 251981Z
RESTRICTED
RECEIVED IN TOP COPY
REGISTRY No. 50
26 AUG1975
HKK 21/4.
TO ROUTINE HONG KONG TELNO 37 OF 25 AUGUST.
EXIMBANK CREDIT FOR MASS TRANSIT AUTHORITY.
EXIMBANK HAVE TOLD US THAT WHILE THEIR ANSWER TO THE CHAIRMAN OF THE MASS TRANSIT AUTHORITY ABOUT A CREDIT COMMITMENT IS BEING HELD UP BY TECHNICALITIES THEY ARE CONFIDENT OF BEING ABLE TO MAKE AN OFFER SHORTLY. SUGGEST YOU INFORM CHAIRMAN.
2. THEY PLAN TO OFFER A COMMITMENT BASED ON US DOLLARS 330 MILLION AS FOLLOWS:
(A) 45 PERCENT DIRECT EXIMBANK CREDIT AT & PERCENT
(B) 22 AND A HALF PERCENT EXIMBANK GUARANTEE OF PRIVATE SCURCE
LOANS
(C) 22 AND A HALF PERCENT PRIVATE LOANS NOT GUARANTEED BY EXIMBANK (D) 10 PERCENT CASH (1.E. NO EXIMBANK INVOLVMENT IN FINANCING) REPAYMENT OF (C), (B) AND (A) IN THAT ORDER BY 20 EQUAL SEMI- ANNUAL INSTALMENTS BEGINNING JULY 1980.
3. THEY EXPECT THE HONG KONG GOVERNMENT RATHER THAN MASS TRANSIT AUTHORITY TO GUARANTEE EVENTUAL REPAYMENT.
MORETON
REPETITIONS DISTRIBUTION
HKIOD
NAD
FRD
RESTRICTED
27
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