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Registry
No. HWB 21/5
*Pop secret.
SEME
Confidential.
XXXINTXIXX
xtinclassifiest
Sudin CONRANDEX.
DRAFT
To:-
Sir Anthony Percival, C.B., Secretary,
Exports Credit Guarantee
Department,
Barrington House,
59-67 Gresham Street,
London, E.C.2.
Type 1 + 2
From
Telephone No. & Ext.
Department
stand behind the Hong Kong Gort. ( which is to guarantee the loan)
amonulf
as
The am
to half of hivolved in the event of The Guarantee being kirched.
Hong Kong Cross Harbour Tunnel
I am sure you will not mind my writing to you
on a subject which has been vexing both our Departments namely, loan finance
vis eredity for the Hong Kong cross harbour tunnel
project.
2.
Very briefly, the position is that Richard Costains,
the British construction company, have tendered to the
Cross Harbour Tunnel Co. of Hong Kong for the
construction of the tunnel, on the basis of a loan of about 210
several million pounds from Lloyds Bank. severaly
Costains sought ECGD cover inspect of this
loan, and after considerable negotiation at official
Government level this has now been agreed in principle
certam strict
subject to very stringent conditions.
Her Majesty's Government, through my Department, has
become involved politically, since support for the
Tunnel Project is, rightly or wrongly, claimed to be
a symbol of H.M.G's confidence in Hong Kong's future. H.M.G.
We have offered, on certain conditions, to act as
guarantors of half the amount of the loan (The Hong Kong
Government guaranteeing the balance).
3.
that your Dept is seeking to
The reason for my writing to you is the impose additional conditions of a very excbssively stringent nature of the consitions unice
in connexion with the provision of which your wspartment was a grood in principle to
(8635) Dd.033274 300m 10/66 G.W.B.Ltd. Gp.863
/provide
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