COFACE rate, and would find it difficult
to avoid eventually conceding to this previous level (the practice is doubtful under international rules!) The problem
was for the UK to do the same with a
different premium level and system.
(b) The UK had an overhang of special
terms with CLP that reoccurred in the
guise of "extra" Chinese requirements.
In fact, these actually increased for a
time as negotiations proceeded.
The complete set of pieces is shown in Diagram IV. Without going into them in
detail, under most of them there is a permutation of variations for example, capitalisation of interest offers a wide range of options, eg the scale, interest rate, currency, duration, etc. Each
variant involves a cost for the credit
underwriting agency and its government and it is worth saying that we and the
French had "an algebra" for calculating
the costs, and the limits to which each
was prepared to go. One difference was
that the French could do the calculations
in their heads. whereas the UK side had
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