GR 300
IMMEDIATE
CYPHER/CAT A
FM BTC HONG KONG 021015Z
CONFIDENTIAL
258
HKK 164/
No
CONFIDENTIAL
TO IMMEDIATE E.C.G.D TELNO.EXCED 30 OF 2 DECEMBER 77,
INFO D.T. (FOR CRE4 AND MACDONALD 1.C2.).
FOR BIRCH.
(267) YOUR EXCED 32: HONG KONG POWER STATION.
1, I HAVE SPOKEN TO SIR LAURENCE AND EXPLAINED THAT YOU, ELLIOTT AND FOXALL ARE COMING IN ADVANCE OF LIPPITT TO TALK TO HONG KONG
BANKS BECAUSE DISCUSSIONS IN LONDON HAVE NOT RESULTED IN AGREEMENT.
I WARNED HIM THAT ALTHOUGH WE WANTED TO USE H.K DOLLARS WE ARE HAVING TO LOOK AT A U.S DOLLAR POSSIBILITY AND WERE CONCERNED THAT HE SHOULD NOT GET A WARPED VERSION OF OUR POSITION.
2. YOU SHOULD KNOW THAT SIR SIDNEY AND SIR LAWRENCE ARE THEMSELVESS
IRRITATED BY THE BARGAINING POSITION ADOPTED BY THE HONG KONG
SHANGHAI BANK AND ARE NOT SURPRISED THAT WE SHOULD BE LOOKING AT
FINANCING IN OTHER CURRENCIES. SIR LAWRENCE WAS MOST GRATEFUL
FOR YOUR COURTEOUS WARNING. HE LEFT ME WITH THE IMPRESSION THAT
HE SHARES OUR VIEW THAT AN EXCESSIVE MARGIN IS BEING REQUESTED
FOR WHAT HE REGARDS AS ''ONE NIGHT'S WORK''. YOU SHOULD ALSO KNOW THAT I HAVE BEEN TOLD IN STRICT CONFIDENCE THAT SIR LAWRENCE
AND SIR SIDNEY RECENTLY REACTED VIOLENTLY TO A SUGGESTION BY
THE HONG KONG SHANGHAI BANK THAT CLP WOULD DO BETTER TO GO TO
INTERNATIONAL TENDER. THE BANK WERE TOLD BLUNTLY TO MIND THEIR
OWN BUSINESS. AN APOLOGY WAS SUBSEQUENTLY OFFERED.
3. 1 HAVE MADE AN APPOINTMENT-FOR YOU WITH SANKEY AT 1430 ON
WEDNESDAY 7 DECEMBER. HADDON-CAVE IS UNFORTUNATELY HEAVILY BOOKED (LEGCO MEETINGS ETC) BUT WILL SEE YOU AT 1890.
4. ACCOMMODATION HAS BEEN ARRANGED FOR YOUR PARTY AT THE HONG KONG HOTEL FROM THE NIGHT OF 6/12 ONWARDS, UNFORTUNATELY, I SHALL NOT BE ABLE TO MEET YOU AS I SHALL BE IN HOSPITAL FOR A MINOR OPERATION FROM DECEMBER 6-8.
MARCH
EXCED DISTRIBUTION
HK & GD (5)
TRED
CONFIDENTIAL