CONFIDENTIAL
17
E.C.G.D. will requiro to be satisfied as to the terms of the loan agroonent and the supply contract. This is implicit in H.M.G's undertaking
to share in the quarantoo on a commercial contract otherwise acceptable to 3.C.G.D. The points mainly concorn the adequacy of provisions for termination of contract, arbitration in case of disputo, adequate definition of responsibilitics and amounts involved, and the interlocking or compatibility of the two contracts.
8.
Additionally, H.M.G. will wish to bo satisfied that the torms are not so onorous to the supplier as to be incapable of fulfilment or which could only be fulfilled at considorable hardship. As guarantors H.M.G. and tho Government of Hong Kong have the same interest in this rogarð noithor wish to force the contractor into bankruptcy during construction. As sharoholders tho Hong Kong Government have slightly difforont interests and H.M.G. hope that in the former capacity the Government of Hong Kong will use their influence with the sharchol dors to secure reasonablo torns.
CONFIDENTIAL
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