RESTRICTED
BRIEF 12
BRIEF FOR VISIT TO HONG KONG BY MINISTER FOR TRADE
30 AUGUST 5 SEPTEMBER 1980
EXPORT CREDIT
POINTS TO MAKE (IF RAISED)
1.
The full range of ECGD facilities is available to support UK exports to Hong Kong.
2.
ECGD believes that the terms it supports are broadly competitive with those available from other credit-insurers.
3.
ECGD has supported a substantial amount of medium/long term business with Hong Kong and despite the already large commitment is prepared to consider cover for further new business.
4.
New UK investment in Hong Kong is eligible for support under the Investment Insurance Scheme. Full normal cover against political
risks is available.
BACKGROUND POINTS
5.
Hong Kong is graded 'A' in ECGD's four grade system and attracts the most favourable rates of premium.
6.
Normal short term cover (up to 180 days) is available without restriction. (Short term commitments total £51m.)
7. Medium/long term cover is available subject to a reviewable limit on total commitments under Section 1 (Commercial Account). limit was introduced in February 1979 when demand for cover was building up from the generally modest level of past years.
Large contracts valued at over £50m are covered under Section 2. The current position is:-
SECTION 1 (COMMERCIAL ACCOUNT) SECTION 2 (NATIONAL INTEREST)
LIMIT
£500m
No formal restrictions
COMMITMENTS
£163m
£910m
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