86
GRS 430
MMEDIATE
CYPHER CAT/A
FM BTC HONG KONG 261045Z
RESTRICTED
RESTRICTED
R
RE
*
29 SEP 1975
51
TO IMMEDIATE E C O D TELEGRAM NO EXCED 55 OF 26 SEPTEMBEK INFO IMMEDIATE DUT CRE4 (FOR ROBERTS) AND OPG (FOR BRYANT).
FOR COTTERILL FROM KINNEAR.
MY TELEGRAM NO EXCED 53: MASS TRANSIT.
Ri
I HAVE NOW OBTAINED FOLLOWING INFORMATION ON VARIOUS CREDIT
OFFERS:
(1) JAPAN. FINAL OFFER WILL NOT BE MADE UNTIL MONDAY BUT THEY MADE OFFER IN WRITING IN JULY TO COVER 85% FOR A PERIOD OF EIGHT AND HALF YEARS. MASS TRANSIT ARE CONFIDENT THAT JAPANESE WILL UP MAXIMUM CREDIT PERIOD TO 10 YEARS. RATE OF INTEREST OFFERED WAS EIGHT AND HALF PERCENT, BUT HERE TOC MASS TRANSIT EXPECT JAPANESE TO IMPROVE TO EIGHT PER CENT. JAPANESE ALSO OFFERED IN WRITING LAST JULY TO COVER 15% OF LOCAL COSTS.
1729/4x
(11) U.S.A. MASS TRANSIT HAVE A PRELIMINARY COMMITMENT WITH 90% COVER AND 10 YEARS FROM FINAL COMMISSIONING. 96% IS MADE UP OF 45% EX-IM BANK FUNDS, GUARANTEE ON TWENTYTWO AND HALF PER CENT AND TWENTY-TWO AND HALF PERCENT NOT UNDER GUARANTEE. RATE OF INTEREST WILL BE EIGHT PERCENT ON EX-IM BANK PORTION, AND HIGHER ON NON GUARANTEED PORTION.
(111) FRANCE, THE FRENCH TERMS ARE 10 YEARS AT INTEREST RATE OF SEVEN AND HALF PERCENT FOR CIVIL ENGINEERING CONTRACTS OF MINIMUM OF 150 MILLION FRANCS. AT PRESENT THEY ARE PROPOSING 10 YEARS FROM CONTRACT COMPLETION, BUT MASS TRANSIT HOPE TO PERSUADE THEM TO CHANGE THIS TO FINAL COMMISSIONING, MINIMUM COVER FOR CONTRACTS OF LESS THAN 150 MILLION FRANCS IS 7 YEARS AND THIS IS STILL BEING ARGUED, THE FRENCH HAVE NOT OFFERED ANY COVER ON LOCAL COSTS BUT
RESTRICTED
/LOCAL