TNAG-0097-FCO40-133-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 120

he said it was impraet.oal and useless to offer to remnerate shareholders at a rate of less than 11% or 12%; his ideas had centred on a figure of H maximum being diverted to the Guarantee Find as a form of war risk premiuAM – After further discussion on this point, Mr. Brothers in consultation with Mr. Birtwistle and Mr. Thompson, produced the following formula for the de termination of the value of contributions to the fund:-

"5% of revenue, after payment of tax, royalties, operation expenses,

loan repayments and interest, or, a minimum of £100,000 provided this amount not more than total revenue.'

Mr. Lowton accepted the formula as a basis for further discussion within the Department and, prompted by Kr. kullineaux, hoped that an answer sould be given to Costains by Wednesday afternoon,

3. Before the meeting olosed Ir. Birtwistle omfirmed that the lien om revenues, in the original concept still stands. The lien would be available

to the U.K. lending bank in the event of default on the part of the Tunnel Comp∙ny an repayments of the loan. Mr. Lowton emphasised to Mr. Brothers that the guarantees of payment must be aosolute throughout the period of the contract and repayment period.

Mr. Cotterill. Mr. Lowton

Mr. Broad

Ir. Elliott

Mr. Stephens (E.I.B.)

(Le H. Surroughs)

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