CONFIDENTIAL
21982
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FOR THEM TO CHARGE AN APPROPRIATE FEE, AS HAS BEEN
AGREED WITH THE FRENCH BANKS FOR A SIMILAR FACILITY.
THE REVISED ARRANGEMENTS WOULD ALSO NEED TO BE AGREED
WITH OTHER MEMBERS OF THE BANKING GROUP. TO KEEP EXTRA
ADMINISTRATIVE COSTS TO A MINIMUM, ECGD WOULD PROPOSE A
MINIMUM CONTRACT VALUE OF POUNDS 250,000. PREMIUM WOULD
BE CHARGED BY ECGD ON THE SAME BASIS AS BEFORE.
2.2.B
IN
(ELIGIBLE LOCAL COSTS) AS STATED IN THE
MOU BETWEEN HMG AND BOC, LOCAL COSTS FINANCED UNDER THE
LOAN AGREEMENT MUST BE INCURRED UNDER CONTRACTS WITH
UK SUPPLIERS. THIS IS A LEGAL AND PARLIAMENTARY
REQUIREMENT IMPOSED ON ECGD AND MUST BE OBSERVED. ADDITION, FULL PREMIUM MUST BE CHARGED ON ANY LOAN AMOUNT SUPPORTED BY ECGD. HOWEVER, GEC HAVE AGREED TO OPEN SQUARE BRACKET ABOLISH CLOSE SQUARE BRACKET
OPEN SQUARE BRACKET REDUCE TO X CLOSE SQUARE BRACKET
THE PROPOSED HANDLING CHARGE FOR LOCALS PLACED WITHIN
THEIR CONTRACT.
TRANSFERABILITY OF ELIGIBLE LOCAL COST FINANCING
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IN LINE WITH OUR FRENCH PARTNERS, WE CAN AGREE
THAT THE SAME TERMS WILL APPLY TO LOCAL COSTS AS DEFINED
IN ATTACHMENT 2 TO THE MOU, WHETHER OR NOT THESE ARE
WITHIN THE GEC CONTRACT.
MEMORANDUM OF UNDERSTANDING
4.2B
IT IS NOT APPROPRIATE TO REFER TO THE
MEMORANDUM OF UNDERSTANDING IN THE LOAN AGREEMENT. THE
MEMORANDUM IS AN AGREEMENT BETWEEN THE UK AND CHINESE
AUTHORITIES WHEREAS THE LOAN AGREEMENT IS BETWEEN A
COMMERCIAL BANK AND THE BANK OF CHINA. WE MUST THEREFORE
REQUEST THAT THE BOC RECONSIDERS ITS POSITION ON THIS
POINT. WE BELIEVE THAT THE MEMORANDUM OF UNDERSTANDING
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CONFIDENTIAL