21
BR F G O
un 323
CONFIDENTIAL
DESKBY 251015Z
FM BTC HONG KONG 2509372 JAN 79,
Top + 3D!
$
HKK 13/2
LIPPITY)
3 DOT/1.0.1 (for LAPOT:)
NO DISTRIBUTION
3
an
TO IMMEDIATE D.0. #
No
A
TELNO.CREDA 39 OF 25 JANUARY
See
INFO D.0.1 (FOR LIPPITT)
HKG D
PUSS (2) TRED (2)
K129
F.C.O.
ao
FOR ROYCE.
YOUR TEL NO.CREDA 19 : MASS TRANSIT RAILWAY.
1. METCAM HAVE PUT THE OFFER N LAZARD'S TELEX TO THE M.T.R.
THOMPSON, CHAIRMAN, HAS TOLD ME ON A PERSONAL BASIS THAT HE
IS CONFIDENT THAT HE CAN ACCEPT IT. HE HAS ASKED HIS FINANCIAL DIRECTOR (ALLUM) TO OBTAIN GUIDANCE ON THE LIKELY
PERFORMANCE OF U.S INTEREST RATES. METCAM HAVE ASKED LAZARDS TO SUPPLY THIS INFORMATION.
2. I SPOKE TO THOMPSON ON THE LINES OF YOUR PARA.3 AND UNDERLINED THE IMPORTANCE OF NOTE (B) IN PARA.1. THOMPSON ASSURED ME THAT THE SUBMISSION TO HIS BOARD WILL SIMPLY REFER TO METCAM'S ABILITY
TO ABSORB INTEREST COSTS UP TO 31 DECEMBER 1982 TO THE MAXIMUM OF US DOLLARS TEN MILLION 1.E THERE WILL BE NO REFERENCE TO THE MECHANICS BY WHICH THIS HAS BEEN ACHIEVED. HE SAID THAT THE ONLY PEOPLE IN THE M.T.R WHO WILL BE MADE AWARE OF OUR TACTICS ARE HIMSELF, TONY RIDLEY (MANAGING DIRECTOR), TONY ALLUM (TREASURER
AND MICHAEL PARSONS (LEGAL ADVISER). HE ALSO ASSURED ME THAT AS OF NOW **THE BOOM HAS COME DOWN AND THERE WOULD BE NO OPPORTUNITY FOR ANYONE TO MAKE A FINANCIAL OR COMMERCIAL REVISION
TO THEIR BID.
3. WHILE I SHALL INFORM MY USUAL CONTACT OF YOUR OFFER AND OF
YOUR CAVEAT, I AM CONTENT TO SAY NOTHING FURTHER TO THE HONG KONG
GOVERNMENT AT THIS STAGE ABOUT YOUR CONSIDERATION OF PRE-SHIPMENT FINANCE GUARANTEC IN RESPECT OF THE K.C.R CONTRACT. 1 ENTIRELY AGREE WITH SANSOME THAT WE SHOULD NOT PURSUE THIS UNTIL HIS RETURN AFTER FEBRUARY 3. IN ANY EVENT WE ARE ABOUT TO ENTER THE FIVE DAY PERIOD OF CHINESE NEW YEAR.