22 December 1992

D Hall ES Q

Head of PEP

Overseas Trade Services 1

Ashdown House

123 Victoria Street

London

SWIE GRB

ENGLAND

British

Trade Commission Hong Kong

9th Floor, Bank of America Tower,

12 Harcourt Road, Hong Kong

Mail Address: GPO Box No 528, Hong Kong

Telephone: 523 0176

Telex: HX 78081 (a/b 78031 UKTRA HX) Facsimile: (852) 845 2870 Cable Address: UK TRADE, Hong Kong

Dear David,

I have seen both Richard Allen and Jamie Dundas on a number of occasions recently. I mentioned to Jamie Dundas that it would be helpful to have a summary of the PAA's financial position. His letter of 15 December is the outcome. Although it contains no surprises, I hope you will find it helpful as background when briefing the Minister.

He will see MFT will, on 6 January, be calling on the PAA. Jamie Dundas first with officials only (for 20 minutes or so for a briefing on the financial aspects, when Jamie Dundas will doubtless stress the importance of ECGD cover and support), and then Douglas Oakervee, overall project director, (along with the missioners for a full briefing on the build programme). Unfortunately, Richard Allen will not be present at these

He is meetings. He will be in the USA until 8 January. however keen to ensure that the Minister and officials (and in particular yourself) receive a full briefing on the PAA's work

Assuming that programme and concerns on the financing side. appropriate messages of comfort and endorsements for post 1997 debt are secured, the need for commercial financing and cover will become a topical issue in early 1993 when the prequalification exercise on the new terminal building gets underway. The validity of franchises post-1997 are, of course, an ongoing concern here, and not only for the PAA.

The reference (penultimate paragraph of Jamie Dundas's letter) to the PAA receiving strong indications of both export finance and commercial lending associated with the site preparation contract is to the exchange of letters between Richard Allen and MFT and STC and Richard Allen in July this year (copies enclosed for ease of reference). Since then, of course, a decision was taken to offer the site preparation project as a

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Every effort is made to ensure that the information given herein is accurate, but no legal responsibility is accepted for any errors, omissions or misleading statements in that information caused by negligence or otherwise and no responsibility is accepted in regard to the standing of any firms, companies or

individuals mentioned.

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