TNAG-0097-FCO40-133-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 158

Reference..

NOTE FOR RECORD

54

I attended a meeting at the Treasury on Friday,

1 September at which were present Mr. Cotterill and an

underwriter from E.C.G.D. Mr. Mackay of the Treasury

was Chairman.

2.

proposal

I confirmed that the Commonwealth Office was limited

to a guarantee of support to Hong Kong to the extent of

half the sum involved should the 100% guarantee which the

Colony was required to provide ever be invoked. We had

believed this committed £5 million at the very most, but as

the meeting broke up a Treasury officer pointed out that at

worst a further £2 million interest could be due, increasing

H.M.G's the total guarantee to £12 million and Hong Kongle share

to £6 million.

3. The Treasury proposed to require the Tunnel Company's

money to be spent first as far as possible without causing

work programme difficulties.

4.

They were also considering whether, if the Tunnel

failed to pay for pure economic reasons, H.M.G's assumption

of half the responsibility over the guarantee should still

stand; H.M.G. were involving themselves because of political

not economic/financial considerations. The consensus was that

though there was a logical reason for making this distinction

in practice it would be impossible to determine the exact reasons for the Tunnel failing to pay as political conditions

so affected economic ones.

пишевиль

P.M. Hewitt

(5.9.67)