RESTRICTED
FM ECGD
TO PRIORITY BTC HONG KONG
TELNO EXCED 009
OF 0408OOZ DECEMBER 91
AND TO PRIORITY DTI, FCO
RESTRICTED
COPY TO DTI (R.ROGERS PEP/DTI)
FCO (FED/HKD)
FOR HEAP FROM PENTECOST
HKB 182/3
169
055164
MDLIAN 9409
used drobotic f#
Ри
LANTAU FIXED CROSSING - VISIT OF LORD CAITHNESS
1.
WE UNDERSTAND THAT LORD CAITHNESS WILL BE ARRIVING IN HONG KONG ON 6 DECEMBER AND WILL BE SEEING THE GOVERNOR.
2.
THE BRIEF WE PROVIDED BEFORE HIS DEPARTURE STATED THAT ANY DECISION RELATING TO ECGD COVER FOR THE LANTAU FIXED CROSSING WOULD HAVE TO BE REFERRED TO MINISTERS FOR CONSIDERATION AS WE DID NOT EXPECT UNANIMITY AMONG DEPARTMENTS. IT WAS NOT POSSIBLE IN FACT TO
ACHIEVE CONSENSUS BETWEEN TREASURY AND OTHER DEPARTMENTS BUT THE P.M. HAS AGREED THAT WE MAY INDICATE, WITHOUT COMMITMENT AT THIS STAGE, OUR WILLINGNESS TO PROVIDE SUPPORT FOR LANTAU FIXED CROSSING. WE WOULD BE GRATEFUL IF YOU COULD ADVISE LORD CAITHNESS THAT HE MAY NOW
TAKE THE FOLLOWING LINE IN ANY DISCUSSION ON THE PROJECT THAT HE MAY HAVE WITH THE GOVERNOR :-
QUOTE UK CONTRACTORS WHO ARE BIDDING FOR THE LANTAU FIXED CROSSING
ARE OBTAINING INDICATIONS OF SUPPORT FROM ECGD TO ASSIST THEM IN PUTTING FORWARD BIDS WITH FINANCING PROPOSALS. IN LINE WITH NORMAL
PRACTICE FIRM COMMITMENTS WOULD ONLY BE MADE WHEN DECISIONS ON
CONTRACT AWARD ARE KNOWN. UNQUOTE.
BACKGROUND
3.
AS YOU KNOW, IN THE INITIAL BIDDING PHASE ECGD SEEKS TO PROVIDE INDICATIONS OF COVER, WITHOUT COMMITMENT ON A FIRST COME FIRST SERVED BASIS. FOLLOWING DIFFICULT DISCUSSIONS IN THE EXPORT GUARANTEE COMMITTEE, WE NOW HAVE AUTHORITY TO PROVIDE THE NECESSARY INDICATION. THIS IS NOT A FIRM COMMITMENT TO SUPPORT AS SUCH BUT DOES MEAN THAT AS AT TO DAY ECGD HAS THE CAPACITY TO SUPPORT A DEAL OF THIS SIZE IN HONG KONG. IT IS NOT NORMAL FOR US TO PROVIDE A FORMAL COMMITMENT UNTIL CONTRACT AWARD. AT THAT STAGE WE WOULD NEED TO TAKE ACCOUNT OF
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