CHINESE "REQUESTS" IN MEMORANDUM OF 1983
1.
FIRST REPAYMENT TO BE PAYABLE SIX MONTHS AFTER ACTUAL COMMISSIONING OF SECOND UNIT.
2.
ALL INTEREST PRIOR TO COMMISSIONING TO BE CAPITALISED AS PART OF EXPORT CREDIT FACILITY AT SAME INTEREST RATE.
3.
UK TO PUT CEILING ON ESCALATION OF PRICE OF GEC EQUIPMENT.
4.
UK TO CONSIDER COVERAGE OF REASONABLE THIRD COUNTRY ELEMENT IN GEC'S CONTRACT ON SAME CREDIT TERMS.
5.
AGREED THAT INTEREST RATE OF LOANS WOULD BE FIXED AT OECD CONSENSUS RATE AT DATE OF CONTRACT SIGNATURE (THEN 9.5%). OECD RATE DROPPED PRIOR TO CONTRACT, LOWER RATE TO APPLY.
ADDITIONAL SUBSEQUENT CHINESE REQUESTS
IF
بتا
1.
SOFT LOAN TERMS FOR PART OF FINANCE.
2.
3.
4.
5.
BALANCE AT SUB-CONSENSUS INTEREST RATE.
COVER FOR LOCAL COSTS TO BE AVAILABLE WHETHER OR NOT WITHIN GEC CONTRACTUAL RESPONSIBILITY.
AT LEAST 15% OF LOAN TO BE DENOMINATED IN HK$.
SUBSTANTIALLY REDUCED ECGD PREMIUM.
6. BALLOONING FOR PRINCIPAL REPAYEMNTS (HIGHER TOWARDS END).
7.
8.
9.
10.
DEFERRAL OF PAYMENTS AT SAME INTEREST RATE IF JVC CANNOT SELL POWER.
ECGD/MIDLAND TO MAKE UP ANY SHORTFALL IN PROVISION OF FUNDS BY LENDING BANKS.
INTEREST RATE NOT TO EXCEED 9.5%, EVEN IF CONSENSUS RATE RISES BEFORE CONTRACT SIGNATURE.
JVC TO HAVE RIGHT TO SWITCH CURRENCIES.