*,'i
CONFIDENTIAL- COMMERCIAL IN CONFIDENCE
about the importance of the contract and the
need to avoid scaring clients into looking else-
where are well taken. So are the good prospects
for Hong Kong's future stability and growth, and
the need to avoid action by HMG which might
upset confidence.
ECGD nevertheless point out
that their commercial position obliges them to
seek as good security as possible.
4.
It was agreed that there would be major
difficulties over a guarantee from CLP and Esso
Eastern (or Exxon), although ECGD still hope to
make some progress on this. I firmly stated that
a full Hong Kong Government guarantee was not
possible and explained the difficulties over
absolute assurances on the scheme of control.
5. It was agreed that no action should be taken
until Exxon had decided to participate.
Then
there will be further confidential discussion
on how to meet ECGD's needs. We will be involved
inge
must
and and it is clear that any proposals will be
realistic. There is no question of threats or
precipitate action.
At some stage discussion
between yourselves and ECGD may be helpful to
tarify the picture for them,
any
6. Grateful meanwhile for figures showing pro-
jections of demand for electricity over next 20
years.
7. If you see no objection grateful you show this
to Morrison in BTC. We have discussed with March,
though he has not seen this telegram.
CONFIDENTIAL I COMMERCIAL IN CONFIDENCE
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