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HM Treasury

LE MON

Parliament Street London SWIP 3AG Telephone 071 270

4785

87

Mrs A C Cowie

ECGD

PO Box 2200

2 Exchange Tower

Harbour Exchange Square

LONDON

E14 9GS

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Good news

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HONG KONG: KAPSHUI BRIDGE AND VIADUC

28 April 1992

Mr. Hapland Rwith

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Thank you for your letter of 25 March to Roger Watts in which sought our approval to indicate support on a first come first serve basis for Trafalgar House's prospective bid for the contract to design and construct the Kap Shui bridge and viaduct. also seen letters from the Bank of England, DTI and FCO, and I confirm that we are content with your proposal.

-ECGA.

I have

ECGD's maximum liability for a Sterling loan will be £143.2 million, but there will be an additional element (£14.175 million) in respect of both "parallel" and bond risk cover which has been weighted to reflect the different types of risk. (Mr Hawtin's letter of 14 February 1992 to Mr Mortimer - "Accounting for Different Categories of Exposure" refers). Accordingly, £157.375 million should be logged against the 1992/93 Amber Zone Budget for this business if it goes forward.

I am copying this letter to Tim Downing (Bank of England), Peter Casey

(DTI),

Philip Rose (ODA).

David Seddon

(FCO), Miles Faulkner (MOD) and

Yours sincerely

Terry Rogers.

TERRY ROGERS AEF2

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