PA.
1413
CONFIDENTIAL
INWARD TELEGRAM
TO THE COMMONWEALTH OFFICE (The Secretary of State)
FROM HONG KONG (Sir D. Trench)
Cypher
D. 13th March 1967 R. 13th
#
11
09.10 hrs.
RECEIVED IN
ARCHIVES No. 63 13 MAR1967
HWB21/5
CONFIDENTIAL
No.328
1.
Addressed to Export Credits Guarantee Department, London. Repeated Board of Trade Commonwealth Office
(C.0. please pass to both)
Following from British Trade Commission Hong Kong.
EXPORTCRED No.40
For Elliott from Hannam.
Tunnel.
Scales & Bros. called this morning to give me a copy of the Tunnel Company letter to Costains mentioned in my EXPORTCRED No.36. It follows lines previously advised.
2. Both men are coming to London before Easter and may try to contact you.
3. In spite of close questioning they would not reveal the names of competing bidders, nor give details of their credit terms but I inferred that Clague's information contained in EXPORTCRED No.37 was not very far from the mark. (I did not of course mention his name or hint at what he said.
1
4. Brothers also confirmed that other tenderers had been asked to quote for steeper approach ramps' which I took to be the point covered in paragraph 2 of my No.37.
50
Scales said the Company's authorised equity would remain at $129,000,000. He denied any knowledge of governmental 25%. He said however that the Government are planning a very small increase beyond 121% in order that they may continue to have the 10% necessary to seat a director when the public flotation of 25% of the equity is eventually made.
6. The main shareholders remain as before. The board are undecided whether they would now accept Yaumati ferry finance even if it were offered.
7. Scales said the several (?general intended) guarantee outlined your EXCED No.40 paragraph 2 was non starter, as Government and Hongshai have always refused to be saddled with any guarantee. He said the only guarantee the company could and would offer for a 75% loan was the first lien on the revenue.
CONFIDENT I AL
18.
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