HM Treasury
Parliament Street London SW1P 3AG
Direct Line 01-233 5015
Switchboard 01-233 3000
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32
Our Ref: KB/45
Export Credits Guarantee Dept,
CC Birch Esq
Aldermanbury House
London EC2P 2EL
Aldermanbury
Der Charles,
معلمان
No
HONG KONG: MERC ISLAND LINE
1.
ACER
16 July 1981 Letter!
Avery techni Mr McQuade A21/2
Mr
The Treasury
are now
prepared to agree financing
HK & for the MTRC.
in
28
Мазеан
2) Ju
I am writing in reply to your letter of 3 June, reporting on your discussions with Norman Thompson of MTRC in Hong Kong and seeking our agreement that ECGD should accept a commitment to Hong Kong dollar financing for the whole of the Island Line project, subject to the conditions set out in paragraph 7 of your letter.
2.
We spoke on the telephone about this yesterday, and you told me that the following points had emerged from a meeting which Sir Kenneth Clucas had held earlier this week about the project:-
ii.
i.
the UK contractors and bankers concerned had expressed the view strongly that the amount of business which the UK might hope to obtain had been exaggerated. Their best assessment was that the UK might get E&M business amount- ing to about £80 million (loan value), plus no more than two of the civil engineering contracts worth about £40 million each. maximum amount of Hong Kong dollar lending (excluding interest) guaranteed by ECGD might therefore be of the order of £150 million.
The
Japanese participation would not involve a call on Hong Kong dollar financing. They would finance through yen supplier credits, contract- ing in Hong Kong dollars and taking the exchange risk.
f
Electrical
Mechanical