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62019
1
PAYMENT. OUR POSITION IS THAT ANY SUCH MANUFACTURE IS A LOCAL
COST. THERE IS PROVISION IN THE LOAN TO COVER LOCAL COSTS UP TO
15 PER CENT OF THE UK CONTENT. BUT IF MANUFACTURE IS TRANSFERRED
FROM THE UK TO CHINA, THIS MUST REDUCE THE OVERALL SIZE OF THE
LOAN, WHICH IS BASED ON THE THE UK CONTENT. THE JVC HAVE REFUSED
TO AGREE A REDUCTION IN THE LOAN VALUE. THUS AT PRESENT GEC ARE
UNWILLING TO PURSUE FURTHER THE PROPOSALS FOR LOCAL MANUFACTURE.
ABRAHAMS MAY WISH TO BRIEF YOU FURTHER ON THIS POINT AND ASK YOU
TO ACCOMPANY HIM TO MEETING WITH MMBI. SUGGEST THAT IF YOU DO SO
YOU MAKE CLEAR TO ABRAHAMS THAT ON SUCH A TECHNICAL ISSUE YOUR
ROLE CAN ONLY BE TO REPORT BACK TO DTI/ECGD.
4
LATEST REPORT FROM SHENZHEN ON LOAN AGREEMENT NEGOTIATIONS
INDICATES THAT OUTSTANDING PROBLEMS ARE BEING SOLVED, THUS
PERMITTING PROGRAMME TO BE MAINTAINED.
5
GRATEFUL FOR A RESPONSE TO PARAS 1 AND 2 DESKBY 1000Z ON
15 SEPTEMBER.
HOWE
OCMIAN 2019
!
GUANGDONG
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