OCMIAN 3310
CONFIDENTIAL
00 ΡΕΚΙΝ
FM INDUS TO PEKIN
181827Z SEP
GRS 349
FUCKC
166/1
2 JEF 1986
CONFIDENTIAL
TOP COPY Q DIST ? a
617
CONFIDENTIAL
FM DTI
TO IMMEDIATE PEKING
TELNO INDUS 206
OF 1818272 SEPTEMBER 86
INFO ROUTINE BTC HONG KONG
FOR DAVIES FROM SEDMAN
63310 - 1
.DB.
GUANGDONG.
THERE IS A MAJOR PROBLEM IN GETTING THE GEC CONTRACT INTO LINE WITH
THE INITIALED LOAN AGREEMENT. THE LATTER WAS DRAFTED ON THE BASIS
THAT EQUITABLE SUSPENSION RIGHTS WOULD BE BUILT INTO THE GEC
CONTRACT. THE GNP JVC IN SHENZHEN HAVE NOT AGREED TO THE NECESSARY
CLAUSES AND UNLESS THIS IS RESOLVED ECGD WOULD BE IN AN UNSECURED
POSITION IN CERTAIN CIRCUMSTANCES AND WE CANNOT AGREE TO THE LOAN
AGREEMENT BEING SIGNED UNLESS THIS IS SETTLED. BANK OF CHINA
CONSIDER THE LOAN AGREEMENT TO BE IN ITS FINAL FORM AND WE HAVE
BEEN TOLD THAT ONCE IT HAS REACHED THE STATE COUNIL IT CANNOT BE
ALTERED.
2. ABRAHAMS OF GEC IS STILL HA9DLING THIS MATTER IN SHENZHEN BUT IN
THE EVENT THAT HE OR WE ADVISE YOU THAT HE HAS BEEN UNSUCCESSFUL,
WE SHOULD BE GRATEFUL IF YOU WOULD DRAW THE POSITION TO THE
ATTENTION OF THOSE IN PRC GOVERNMENT WHO CAN RESOLVE THE MATTER. IF
GNP JVC POSITION IS UP-HELD THE LOAN WILL NEED TO BE RE-NEGOTIATED.
THIS WILL TAKE TIME AND 23 SEPTEMBER SIGNING DATE CANNOT BE MET. THE
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