operate

CONFIDENTIAL AND PERSONAL COMMERCIAL IN CONFIDENCE

prudent insurancesystem.

They recognise that they

may be directed by Ministers to override their commercial

scruples, but they must try to get as good security as

possible meanwhile.

4.

Obviously this must not be done bull-headed.

ECGD

would like some assurances from CLP and Esso/Exxon.

They agreed that they should not take action until Exxon

have undertaken to come in with CLP. After that there

will be very careful disussion here in which the DOI,

no less than us, will make sure that nothing is done

to scare the clients away to the Japanese or elsewhere.

5. So far as the Hong Kong Government are concerned,

we have explained why full guarantees are not possible.

ECGD appear to accept that. They still hanker after some

kind of assurance on the use of the scheme of control.

We have said that the nature of the scheme and the Hong

Kong Government's obligations to consumers, seem to

an absolute undertaking

nement

preclude legt}

However, I think that it could well be

very helpful for someone speaking with authority for Hong

Kong, preferably yourself, would be prepared to talk

to ECGD, together with DOI, in order to bolster what we

have said about the prospects for Hong Kong, and to

explain the general intention to continue the

scheme of control If you agreed you might like to

consider doing this when you are here in November.

6.

Guangdong Nuclear

ECGD are not at present pressing the question of Guangdong

(2(d) of Hong Kong Tel 1932). We will watch this, if

necessary taking theline that this and the 'B' Station

must be treated as separate questions (on both of which

Ministers have expressed strong support); and that there

should at least be enough demand to justify both contracts.

CONFIDENTIAL AND PERSONAL, COMMERCIAL IN CONFIDENCE

:

4

Share This Page