Treasury Chambers Parliament Street
London SW1P 3AG
69.
Telephone 01-930 1234 ext
288
J Gill Esq
Export Credits Guarantee Department
Aldermanbury House
Aldermanbury
EC2P 2EL
Our ref: 2FE 17/68/01
HONG KONG MASS TRANSIT SYSTEM
REC
!*!
RES!
27 HU
HKK 21/+
Сору
HKAJO
NA
22 August 1975,
RECEIVED IN REGISTRY No. 43
26 AUGYS ORIGINAL MTM 3/393/1
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We had a word earlier this week about futurelwork on the Gentlemen's Agreement on export credits taking into account the views which the French Treasury, representatives expressed at the meeting here on 13 August about the difficulties of them increasing their export credit rates. This reduces the prospect of an early Gentlemen's Agreement as such, but we obviously need to keep the discussions going. Otherwise there is a danger of further erosion in credit terms. Perhaps the most practical way of keeping the discussion going is to try to arrange for more systematic consultation on the terms for major projects at a suitable moment, and level.
2.
The recent effort to hold the terms for the Brazilian &teel expansion programme failed, I conclude, because the Board of the US Ex-Imbank, and the US Treasury were brought in too late for there to be meaningful consultation between Ex-Im and the Treasu and between the US authorities and other interested governmen.6. By the time Mr Casey made the offer of consultation on this project in mid-July, it was too late to take advantage of his o. We need to get consultations organised before firm national positions are taken up.
3. One major project which appears to be at the stage wher consultation at the policy level could produce useful resu] tr the Hong Kong Mass Transit System. The state of play on thi project was summarised in Ted Lowton's letter of 30 July to Ian Rich. This also summarised the exchanges which ECGD hav with other credit insurers. What I think we now want to do .. mount discussions with the Japanese and the Americans about terms to be offered, to prevent a situation arising where o party offers more favourable terms into the bidding on one p to offset the expectation that another will later offer somet else.
Foo
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p
27/p