[1
their threats of retaliation, actual matching offers and a more aggressive attitude to export credit generally.
5.
As I have already said, we continue to be ready to look at the case for exceptional support for critically important contracts to match the financial terms being offered by competitors. Phase II of the Hong Kong MTRC demonstrates that. But even proceeding on this basis carries with it some danger of being self-defeating by stimula our competitors to counter measures in the same or other cases in which we may have a major interest. Accordingly, such exceptional support must be used extremely sparingly and circumspectly. It is an illusion to think that concessional export credit can provide a remedy for competitive deficiencies on a regular basis either for particular industries or generally.
6.
I am sending copies of this letter to those listed below.
Copies sent to:
Чемо
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K Taylor Esq CB, ECGD MG Stephens Esq, ECGD DN Royce Esq, DOT
M D Butler Esq CMG, FCO
S W Payton Esq CMG, B/England
CONFIDENTIAL
Rustell
FR BARRATT