CONFIDENTIAL
FM BTC HONG KONG
TO
IMMEDIATE DTI
TELNO OTTER 219
OF 22060OZ NOVEMBER 91
AND TO IMMEDIATE F C O
INFO IMMEDIATE TOKYO
CONFIDENTIAL
HKB 182/
Finan.
TOP COPY O DIST ?
54
014545
MDHIAN 3078
(ORIGINALLY ISSUED AS TELNO 347 TO FCO: NOW RE-ISSUED WITH DTI AS ACTION ADDRESSEE.)
DTI FOR PEP AND OT2/2
HONG KONG AIRPORT PROJECT: FINANCING
SUMMARY
THE HK GOVERNMENT SHOWS CONCERN ABOUT ECGD COVER FOR THIS
PROJECT AND ITS FINANCING PROSPECTS, AND SEEKS REASSURANCE FROM US, AS WELL AS OFFERING TO HELP IN ANY WAY POSSIBLE TO HAVE ECGD ARRIVE AT A FAVOURABLE DECISION.
DETAIL
1. I HAVE BEEN CALLED UPON BY STEPHEN SELBY, THE DEPUTY TO THE FINANCIAL SECRETARY IN THE HKG, WHO HAS RESPONSIBILITY FOR CO- ORDINATING FINANCE ON THE AIRPORT PROJECT. HE SAYS HIS CALL ON ME WAS ONE OF A SERIES: CALLS HAD BEEN MADE ON THE FRENCH, CANADIAN AND JAPANESE CONSUL GENERALS AND HE WOULD BE CALLING ON THE AMERICAN.
2.
SELBY EXPLAINED THAT HE WAS MEETING WITH GOVERNMENT REPRESENTATIVES OF THOSE WHOSE FIRMS WERE BIDDING FOR THE MAIN BRIDGE CONTRACT SINCE IT WAS EXTREMELY IMPORTANT THAT THIS GETS GOOD LONG TERM FINANCE. IT WOULD REPRESENT THE FIRST MAJOR OFFER OF EXPORT CREDIT ON THIS COMPLEX OF PROJECTS, AND IT WAS VITAL THAT THIS BE OBTAINED ON GOOD AND ACCEPTABLE TERMS WHICH WOULD SET A PRECEDENT FOR OTHER PARTS OF THE PROJECT TO FOLLOW. HE ENQUIRED WHETHER I THOUGHT ECGD WOULD BE LOOKING FOR A PRC GUARANTEE ESPECIALLY FOR COVER GOING BEYOND 1997, OR WHETHER A GUARANTEE FROM THE SPECIAL ADMINISTRATION REGIONAL GOVERNMENT OF HONG KONG FOR THE PERIOD AFTER 1997 WOULD MEET ANY SOVEREIGN GUARANTEE REQUIREMENT. HE ASKED WHETHER THERE WAS ANYTHING THE
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CONFIDENTIAL