НКК
16611
OCMIAN 0706
CONFIDENTIAL
00 HKBTC
FM INDUS TO HKBTC
0516152 SEP
GRS 269
CONFIDENTIAL
FM DTI
TO IMMEDIATE BTC HONG KONG
TELNO INDUS 212
OF 051615Z SEPTEMBER 86
AND TO IMMEDIATE PEKING
INFO ROUTINE PARIS
SEP 1966
I'
TRY
shkun Takam
CONFIDENTIAL4
GUANGDONG NUCLEAR : OUTSTANDING NEGOTIATIONS
550
TOP COPY Q DIST_?
60706 1
www
1. ECGD AND MIDLAND BANK ARE RESUMING NEGOTIATIONS IN SHENZHEN NEXT
WEEK IN AN ATTEMPT TO REACH AGREEMENT ON THE LOAN AGREEMENT. PENTECOST (ECGD) WITH MIDLAND WILL ARRIVE SHENZHEN ON 7 SEPTEMBER, AND SEAMAN AND CHAPPELL (ECGD LAWYER) ON 10 SEPTEMBER.
2. THE JVC IS INSISTING THAT THE LOAN AGREEMENT SHOULD BE INITIALLED, INDICATING SUBSTANTIVE AGREEMENT, WITHIN DAYS. BUT, AS ADVISED IN FCO TELNO 875 TO PEKING, WE STILL SEE SIGNIFICANT PROBLEMS. IN ADDITION ECGD HAVE RECEIVED A COPY OF A TELEX FROM JVC TO BOC URGIN BOC TO REQUEST THE RIGHT TO REDUCE THE INTEREST RATE SHOULD THE OECD INTEREST RATE FALL NEXT JANUARY. THIS IS QUITE
UNACCEPTABLE TO US AND THE FRENCH AND IF PURSUED SERIOUSLY WILL
LEAD TO FURTHER DELAY. IT MAY YET BE NECESSARY FOR PEKING TO TAKE
UP SOME OF THESE ISSUES AT POLITICAL LEVEL.
3. COMMUNICATION BETWEEN THE TEAM IN SHENZHEN AND LONDON WILL NORMALLY BE VIA GEC FAX. HOWEVER GRATEFUL IF BTC COULD STAND BY TO
ASSIST IN CASE WE NEED A MORE SECURE ROUTE.
1
CONFIDENTIAL4