XN000022-1976-03-10 — Page 15

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WEDNESDAY, MARCH 10, 1976

MAXIMUM LOAN GUARANTEES FOR MTR INCREASED

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THE LEGISLATIVE COUNCIL TODAY APPROVED A RESOLUTION TO AMEND THE COUNCIL'S RESOLUTION OF OCTOBER 23, 1975 DEALING WITH LOAN ARRANGEMENTS TO BE GUARANTEED BY THE HONG KONG GOVERNMENT ON BEHALF OF THE MASS TRANSIT RAILWAY CORPORATION.

IN MOVING THE MOTION, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, SAID THAT ON MARCH 1, THE METRO LET A FURTHER SEVEN MAJOR INTERNATIONAL CIVIL ENGINEERING CONTRACTS WORTH ALMOST $2,000 MILLION.

HE EMPHASISED THAT THE TOTAL VALUE OF THE CONTRACTS JUST LET WAS WITHIN THE ESTIMATE ASSUMED LAST AUTUMN FOR THE TOTAL CONSTRUCTION COSTS OF THE MODIFIED INITIAL SYSTEM,

THE AMENDMENTS HE PROPOSED SIMPLY SOUGHT TO COVER THE RELATED BORROWINGS THAT WILL BE MADE BY THE MASS TRANSIT RAILWAY CORPORATION IN THE CURRENCIES OF THE COUNTRIES WHOSE COMPANIES HAVE BEEN AWARDED THE CONTRACTS.+

TO THIS END, HE SAID THE MOTION SOUGHT TO INCREASE THE MAXIMUM GUARANTEES IN RESPECT OF THE VALUE OF EXPORT CREDITS TO FINANCE CONTRACTS PLACED IN 1-

* JAPAN FROM 10,000 MILLION YEN TO 34,000 MILLION YEN,

*

IN WEST GERMANY FROM 20.5 MILLION DEUTSCHE MARKS TO 41.5 MILLION DEUTSCHE MARKS,

IN SWEDEN FROM 24 MILLION SWEDISH KRONER TO 56 MILLION SWEDISH KRONER, AS WELL AS

* TO INCREASE THE MAXIMUM SUMS WHICH THE FINANCIAL

SECRETARY MAY GUARANTEE UNDER LOANS ARRANGED BY WARDLEY LIMITED, TO FINANCE LOCAL CONTRACTS, FROM HK$470 MILLION TO HK$570 MILLION.

HE ADDED THAT NO AMENDMENTS WERE REQUIRED IN RESPECT OF FRANCE AND THE UNITED KINGDOM AS, OF COURSE, THESE WERE LINES OF BUYERS' CREDITS.

THE FINANCIAL SECRETARY SAID THAT ADDITIONAL GUARANTEES WOULD ALSO BE REQUIRED FOR THE REMAINING SIX LOCAL CIVIL ENGINEERING CONTRACTS STILL REMAINING TO BE LET. + IT IS EXPECTED THAT ALL BUT ONE OF THESE WILL BE LET BY JUNE.+

THE CORPORATION AT THE END OF JUNE, INTENDS TO LET ALL TEN CONTRACTS FOR THE ELECTRICAL AND MECHANICAL ENGINEER ING PART OF THE WORKS.

IN THIS CONNECTION, MR. HADDON-CAVE SAID HE INTENDED TO INTRODUCE ON JULY 7 A FURTHER AND FINAL MOTION TO COVER ANY FURTHER MOD IF ICATIONS TO THE GUARANTEES THAT WOULD BE NECESSITATED BY THESE CONTRACTS.

+ IT WILL, OF COURSE, STILL BE NECESSARY TO COME BACK FROM TIME TO TIME FOR GUARANTEES IN RESPECT OF RESIDUAL FINANCE SUCH AS BOND ISSUES, HE SAID.

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