4.27/0830
NFO 28/25
Ho. HRIOD.
ADVANCE COPY
(RAMTITIONS DIST
G
(w/69)
RR HONG KONG
GRS 140
CYPHER/CAT A
FM WASHINGTON 2519012
RESTRICTED
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 8 PERCENT
(B) 22 AND A HALF PERCENT EXIMBANK GUARANTEE OF PRIVATE SOURCE 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 SEM I—
ANNUAL INSTALMENTS BEGINNING JULY 1980.
3. THEY EXPECT THE HONG KONG GOVERNMENT RATHER THAN MASS TRANSIT
AUTHORITY TO GUARANTEE EVENTUAL REPAYMENT.
MORETON
NN NN
TSENT AT 25/19582 JAL
26
p.a
Golares
Deut
st
Mr. Jarry (OPG /DOT) -W.
ECGD/M
Bank (M. Lo Treasury
TRED
ab