XN000022-1976-07-21 — Page 5

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WEDNESDAY, JULY 21, 1976

MAXIMUM LOAN GUARANTEES FOR MTR FURTHER INCREASED

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THE LEGISLATIVE COUNCIL TODAY APPROVED A MOTION TO FURTHER AMEND THE SCHEDULE TO 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 IN EARLY JULY, THE CORPORATION HAD LET A FURTHER ÉIGHT ELECTRICAL AND MECHANICAL ENGINEERING CONTRACTS WORTH ALMOST $700 MILLION.

A FURTHER TWELVE CONTRACTS HAVE STILL TO BE LET AND THE ESTIMATED COST OF THE WHOLE MODIFIED INITIAL SYSTEM REMAINED WITHIN THE ORIGINAL ESTIMATE OF $5,800 MILLION, HE SAID.

THE AMENDMENTS PROPOSED TODAY SOUGHT TO COVER THE RELATED BORROWINGS THAT WILL BE MADE BY THE MASS TRANSIT RAILWAY CORPORATION AS A RESULT OF THE RECENTLY LET CONTRACTS.+

TO THIS END, HE SAID THE MOTION SOUGHT TO INCREASE THE MAXIMUM GUARANTEE IN RESPECT OF CERTAIN EXPORT CREDITS AND LOANS, AND TO AUTHORISE HIM TO GRANT ADDITIONAL GUARANTEES IN RESPECT OF LOANS TO FINANCE LOCAL AND INTERNATIONAL CONTRACTS WHICH HAD BEEN LET.

HE PROPOSED TO:

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* INCREASE THE U.K. EXPORT CREDIT GUARANTEE FROM 80 MILLION

POUNDS STERLING TO 140 MILLION POUNDS STERLING TO COVER THE ELECTRICAL AND MECHANICAL CONTRACTS PLACED WITH BRITISH FIRMS,

* INCREASE THE GERMAN EXPORT CREDIT GUARANTEE FROM 41.5 MILLION

DEUTSCHE MARKS TO 69.6 MILLION DEUTSCHE MARKS TO COVER THE ONE ELECTRICAL AND MECHANICAL CONTRACT AWARDED TO A GERMAN FIRM,

* INCREASE THE GUARANTEE IN RESPECT OF LOANS ARRANGED BY WARDLEY

LIMITED FROM HK3570 MILLION TO HK$690 MILLION TO COVER THE RECENTLY AWARDED LOCAL CONTRACTS,

* GUARANTEE A LOAN FACILITY OF HK$72.5 MILLION TO BE ARRANGED

BY JARDINE FLEMING LIMITED TO FINANCE LOCAL AND INTERNATIONAL CONTRACTS,

* GUARANTEE A LOAN FACILITY OF HK$15 MILLION TO BE ARRANGED

BY KYOWA LIMITED TO FINANCE CONTRACTS PLACED IN JAPAN,

* GUARANTEE A LOAN FACILITY OF US$55 MILLION TO BE ARRANGED

BY JARDINE FLEMING LIMITED TO FINANCE LOCAL AND INTERNATIONAL CONTRACTS,

* GUARANTEE A US DOLLAR LOAN FACILITY AND HONG KONG DOLLAR LOAN

FACILITY OF UP TO US$17 MILLION OR ITS HONG KONG DOLLARS EQUIVALENT FOR CONTRACTS PLACED IN THE UNITED STATES AND TO

/* GUARANTEE