1
So
Registry No.
HWB. 21/5-
SECURITY CLASSIFICATION
Top Secret. Secret.
Confidential.
Restricted.
CONFIDENTIAL
DRAFT LETTER
To:-
F.E. Figgures Esq., C.B., C.M.G.,
H.M. Treasury,
Great George Street, London, S.W.1.
Unclassified.
PRIVACY MARKING
In Confidence
I think
Type 1 + 4
From
Sir Arthur Galsworthy
Telephone No. & Ext.
Department
Copies to:-
ZAR.A. Dickinson Esq.,
Ed. (3746)
NOTHING TO BE WRITTEN IN THIS MARGIN
~
C.M.G., E.CL.D.
M.G.X
C.W. Saunders Esq.,
C.B.
Board of Trade,
Board
Sir Alan Jusly
LOOM.
KBC,
сна
at least in jeneral terms, of the project for you will be aware of the proposal to buildà Cross
Harbour Tunnel in Hong Kong. Briefly, the promoters are British companies registered in)
Hong Kong businessmen, who have formed a Tunnel Company
Le
with a capital of £7,5 million of which the Hong Kong
1
Government has agreed to take up a proportion (possibly
estiurated
as much as 49%).
Sour
The cost of the Tunnel is about £17
million, and the balance of about £10 million is to be
Wet
provided by Lloyds Bank (repayable over seven years after.
der
completion) subject to E.C.G.D. guarantee.
the intended contractors.
Costains are
2. Throughout the early negotiations for cover, E.C.G.D. were regarding this as/Section 1 project under the Act,
where the considerations are purely commercial (although,
of course, influenced by political factors). In the
absence of any precedents for this sort of project, they
have from the beginning felt compelled to take a cautious
decided that they must view of its prospects. In the circumstances they require
of the Lloyds Bank ban
a 100% guarantee/from the promoters, based on straight
underwriting considerations.
But the promoters (including felt unable
a
the Hong Kong Government) have been unwilling to give the on the ground mat They could not guarantee arguing that they already carry a great enough-
rotor incuase the extent & which they would
be at risk.
/3. Since
CONFIDENTIAL
ANE
27/
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