ماما
Dur Reference: Your Reference:
/BER 24 126/35.
Dear Cotterill,
Treasury Chambers
Great George Street, London, S.W. 88. Telephone: Whitehall 1234, ext.
Au-$3/4
30th March, 1967.
Mr Carter
4/
Hong Kong Tunne
We did discuss this morning your letter to me of 22nd March on which you wanted urgent advice. This letter is to confirm that we are entirely in accord with you about the need for further guarantees that are proposed by the Tunnel Company at the moment. It would be quite wrong for E.C.G.D. to be taking on speculative trading risks and in effect an equity interest in the investment. Should there be any difficulty about obtaining guarantees from the major shareholders proportionate to their holdings, I would hope that we need not abandon the idea of obtaining a guarantee from the hong kong Government. That Government must have an active interest in the venture, and I would hope that that interest would be sufficiently developed for it to feel able to provide the necessary guarantee to your Department. Should difficulties over this form of guarantee prove to be the only obstacle to our obtaining the contract for the Tunnel construction, I would hope that the Commonwealth Office might be able to support your view by representations at Goverment level.
During
In
Your letter also asked for agreement that your guarantee should be increased to 70% of the value of the contract price. our conversation we suggested that a gur rantee at this level night still leave the Tun..el Company in difficulties in finding the necessary finance for the payments involved before completion. these circumstances I said that we would be prepared to sɔe th guarantee increased to 75% of the value of the contact price.
Copies go to the recipients of your letter.
LAST
REY,
ket.
23
Yours sincerely,
(C.C. Luonз)
I.W. Cotterill, Baq.,
Export Credits Guarantee Department,
P.O. Box No. 272,
Barrington House,
59767, Gresham Street,
B.C.2.
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