DIFFERENT TO WHAT THEY WOULD HAVE TO DO UNDER THE BUYER CREDIT ARRANGEMENT DISCUSSED SO FAR WITH THEM (IN PARTICULAR IT WOULD NOT INFRINGE THEIR PRESENT NEGATIVE PLEDGES UNDERTAKEN IN OTHER LOAN AGREEMENTS), MTRC WOULD THUS APPROVE PROGRESS PAYMENTS IN THE NORMAL WAY. BASED ON PRESENT US DOLLAR INTEREST RATES THE EFFECT OF THESE EARLY DRAW DOWN ARRANGEMENTS WOULD BE THAT SUFFICIENT FUNDS WOULD BE GENERATED TO OFF-SET THE PRE-COMMISSIONING INTEREST WHICH WOULD OTHERWISE HAVE BEEN DUE.
STRICTLY FOR YOUR OWN INFORMATION ECGD ARE WILLING TO CONSIDER THE ISSUE OF A SEPARATE PRE-SHIPMENT FINANCE GUARANTEE IN RESPECT OF THE KCR CONTRACT. ECGD ARE STILL DISCUSSING DETAILS WITH METCAM. SANSOME IS PARTICULARLY ANXIOUS THAT NOTHING (NOTHING) IS SAID ABOUT THIS TO HONG KONG AUTHORITIES OR MTRC. HE IS CONTACTING YOU DIRECT ABOUT THIS. HE IS VERY ANXIOUS THAT IT IS NOT CAUGHT UP WITH THE PHASE 2 ARRANGEMENTS DISCUSSED ABOVE.
PLEASE NOTE (B) OF PARAGRAPH 1 AND CONVEY THE MESSAGE TO ALL THOSE
CONCERNED IN HONG KONG,
NNNN
**
A