at a later stage.
Nevertheless, by the end of the visit the
British team had established that:
5
i.
ii
iii
iv
V
the Hong Kong Bank, probably through its merchant banking subsidiary Wardley's, will work with
us towards putting a HK dollar buyer credit proposal together covering approximately HK $1.4 billion with repayment over 15 years;
the method of fixing the rate of interest has yet to be determined but it is likely to be at a margin (14) over the Hong Kong Bank's best lending rate from time to time;
the foreign exchange transaction will be handled by the Hong Kong Bank and the HK dollars will initially be converted into USZ. Lazards are now looking at the attractions of deferring the sale of the US Dollars for sterling and thus taking the premium on the forward market;
it is essential that CLP/PEFCO, through Schroder Chartered, its own financial advisers, provide detailed cash flow projections for the Iantau project and satisfy us all as to its viability. The Hong Kong Benk is clearly as concerned as ECGD about viability;
Lazards and Wardleys will work closely together with the aim of putting together a package in a form acceptable to the British Government and the client.
Our discussion with Mr Haddon Cave, Financial Secretary to the Hong Kong Government, went well. Mr Haddon Cave indicated that there would be no Government opposition to the proposal so long as they were kept fully informed of our plans. In particular they wished to know the timing of the foreign exchange transaction so that they could watch the market closely. We did, of course, promise to keep the Hong Kong Government fully informed of developments.
6 I believe it is significant that following our discussion with him Mr Haddon Cave saw Mr Boyer, general manager, Hong Kong Bank socially that evening and that the latter's approach was markedly more forthcoming on the second day of our visit. I also believe it helpful to our cause that Mr Boyer stated his intention, at the end of the discussions, of contacting