PP HONG KONG
GR 300
CYPHER CAT A
FM DOT Ø31302 Z
-
- 4 AUG 1977
"KK 16x!
ED IN
REGI ZY H●. 51
TRED (3)
-
tees
HKL
PUSD. (2).
167) (171
DISTRIBUTION
44
1757
RESTRICTED
TO PRIORITY BTC HONG KONG TELNO CREDA 190 OF 3 AUGUST
YOUR CREDAS 115 OF 30 JULY AND 116 OF 2 AUGUST
1. GRATEFUL FOR ARRANGEMENTS FOR MEETINGS WITH SIR SIDNEY CORDON, HADDON CAVE AND CLP/PEPCO REPRESENTATIVES. I WOULD RATHER MEET
SIR SIDNEY WITHOUT BIRCH AND GEMMILL. I WOULD NOT MIND MEETING DUNCAN, PARRATT AND STONES SEPARATELY IF THIS MORE CONVENIENT
TO THEM.
2. AT MEETING WITH HADDON CAVE ON MONDAY, LORD KINDERSLEY AND I WISH TO ENSURE THAT THE ARRANGEMENTS WE PROPOSE FOR DETERMINING
BUYER CREDIT ARRANGEMENTS IN HONG KONG DOLLARS ARE ACCEPTABLE
TO HIM AS FINANCIAL SECRETARY. WE HAVE HAD DISCUSSIONS WITH HONG
KONG SHANGHAI BANK AND WITH SCHRODER WAGG AND STANDARD CHARTERED,
AND WILL BE HAVING MORE DETAILED TALKS IN HONG KONG NEXT WEEK.
IN PRINCIPLE WE ARE PROPOSING THAT THE BANKS SHOULD MAKE
AVAILABLE IN HONG KONG DOLLARS FULL AMOUNT OF FINANCE REQUIRED AT
MOMENT CONTRACTS ARE SIGNED AND THAT THIS SHOULD BE CONVERTED
IMMEDIATELY INTO STERLING DEPOSITS. THE MATURITIES OF THESE
DEPOSITS WOULD BE GEARED TO THE ANTICIPATED REQUIREMENTS OF THE
UK CONTRACTORS FOR PAYMENT IN ACCORDANCE WITH THE TERMS OF THE
SUPPLY CONTRACTS. BESIDES REDUCING CLP/PEPCO'S EXCHANGE
RISK THE SCHEME SHOULD PROVIDE THE OPPORTUNITY TO REDUCE THE UK
CONTRACTORS PRICES, AND, WE HOPE, WILL BE ATTRACTIVE TO HONG KONG. THE DETAILS OF THE ARRANGEMENTS DEPEND, OF COURSE, ON OUR
DISCUSSIONS WITH BANKS NEXT MONDAY.
3. YOU WOULD BE WELCOME AT ANY MEETINGS WHICH FITTED IN WITH YOUR
DIARY BUT PLEASE DO NOT CHANGE ANY OF YOUR EXISTING ARRANGEMENTS
ON ACCOUNT OF OUR VISIT.