CONFIDENTIAL
G
COMMERCIAL IN CONFIDENCE
2
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'Commonwealth Manufacture' clause. There is thus a very real
danger of the UK losing this valuable export market to
foreign competition there is a viable German alternative
available. An ECGD loan is therefore in the national
interest.
4. The KMB company is an integral part of Hong Kong's public
transport system, carrying 2.5 million passengers each day
and the Government has pledged itself to improve the service
offered. For these reasons, the Hong Kong Government's
Scheme of Control will involve close scrutiny of KMB' S
financial plans and its ability to repay the loan. It is
that this would be adequate
therefore, our opinion
security for an ECGD guarantee under Section 2.
CONFIDENTIAL COMMERCIAL IN CONFIDENCE
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