TNAG-0048-FCO40-84-Export-Credit-Insurance-Corporation-1968 — Page 54

CONFIDENTIAL

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7. E.C.G.D. will require to be satisfied as to the terms of the loan

agrooment and the supply contract. This is implicit in H.M.G's undortaking

to share in the quarantee on a commercial contract otherwise acceptable to

1.C.G.D. The points mainly concern the adequacy of provisions for termination

of contract, arbitration in case of disputo, adoquato dofinition of

responsibilitios and amounts involved, and the interlocking or compatibility

of the two contracts.

8.

Additionally, H.M.G. will wish to be satisfiod that the torms are not

so onorous to the supplior as to be incapable of fulfilment or which could

only be fulfilled at considorable hardship. As guarantors H.M.G. and tho

Govornmont of Hong Kong havo the same interest in this rogard neither wish

to force the contractor into bankruptcy during construction. As sharoholdors

the Hong Kong Governmont havo slightly different interests and H.M.G. hopo

that in the former capacity the Government of Hong Kong will use their

influence with the shareholders to secure reasonable torus.

CONFIDENTIAL