50
81
(RECEIVED IN
EXPORT CREDITS GUARANTEE DEPARTMENT
13 SEP1975
O BOX NO 272 ALDERMANBURY HOUSE, ALDERMANBURY, LON
tex 883601
Telephone 01-606 6699
HKK 21/+
1 E Rich Esq
HM Treasury
Parliament Street
LONDON
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VEON tan
RECEIVED IN REGISTRY No. 43
JGNANEF 1975
ON
MTM3 3931
Your icterence
JFCE) 17-6.6-
Our reference
Date
10 September 1975
UC. H.Ka Ng
ARANTEE
DEPAR
HONG KONG MASS TRANSIT SYSTEM
Further to my letter of 30 July we have now been informed that the Hong Kong Executive Council have formally decided to proceed with the Mass Transit Scheme.
2 The first UK tenders have already been submitted to the Provisional Authority and we are told that the Kier Group are on the short list for three separate civil engineering contracts. Award of the first contracts is expected in October although final adjudication begins on 17 September.
3
The Mass Transit Authority have requested further concessions/agreement to the points set out below:-
흐흐흐
(a)
90% finance rather than 85%
Interest Rate 8% rather than di
Agreement that sub-contracts placed in the
UK by Hong Kong contractors qualify for financing
(a)
The 10 years credit to begin from final date of commissioning or March 1980 whichever is the earlier
(e)
(e)
(8)
That we agree to loan drawings for a fixed percentage of total value of certain civil engineering contracts such percentage to be common to all such contracts, rather than 85% of the UK costs
Finance for 15% for local costa
That we dispense with a guarantee of the Hong Kong Goverment and accept a 'letter of comfort' instead
4 The Department proposes (in the light of exchanges with other credit insurers) to reject points 3(a), (b), (f) and (g) above.
5
We have already agreed in principie (although not yet confirmed to the Authority) that sub-contracts of the nature described in 3(c) above would in principle be eligible for financing under the Kleinwort credit. We would expect UK sub-contracts placed by EEC main contractors to be financed under EEC Reciprocal Agreements.