CONFIDENTIAL
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COMMERCIAL IN CONFIDENCE
22/1
23
Foreign and Commonwealth Office London SW1A 2AH
29 SEP 1980
INDEX
PA
REGISTRY
(Action
Telephone
233 3184 No
тогда
C C Birch Esq MBE
Export Credits Guarantee Department
Your reference
Our reference
HKK 164/1
HKK 172/1
Date
POB 272
Aldermanbury House
Aldermanbury
LONDON EC2P 2EL
Dear Birch,
26 September 1980
Original at: HKK 164
This Copy for:
Information only / Action on Para(s)
ECGD PROJECTS IN HONG KONG
See 13
о
1. I found it very useful to attend the meeting on 24 September in Gordon Manzie's room and to hear ECGD's views about your coverage in Hong Kong. We had already let Hong Kong know your I think initial views and I have now brought them up to date. at the same time I should record their position, which we support.
2.
I have already explained the difficulties over any proposal for a full guarantee from the Hong Kong Government or an absolute
The Hong undertaking on the continuance of the scheme of control. Kong view, however, is that there should be no necessity at all for such guarantees and that in practice the monopoly position of CLP will provide satisfactory security on the basis of the good economic prospects for Hong Kong.
3.
Hong Kong have also pointed out the problems which may arise for British commercial interests if credit cover terms for major contracts in Hong Kong are tightened too far. They see this as applying both to the Castle Peak B' contract and to that for buses for the Kowloon Motor Bus Company. They certainly take the view that competition, particularly from the Japanese, would be ready to step in if clients became disillusioned with British terms. In the case of the buses contract they are also worried that pressure could grow, particularly from members of the Executive and Legislative Councils, for an end to the 'buy Commonwealth' stipulation which is at present imposed on the bus company.
4.
I have in turn explained your preoccupations to Hong Kong and have asked the Governor's views on the idea that at some stage he or someone else from Hong Kong might discuss the question with ECGD.
У теб
ever
Dish Crips
R D Clift
Hong Kong and General Department
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A Havelock Esq DOI J Caines Esq DOT
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