CYPHER CAT A
PRIORITY HONG KONG
TELE NO 1685
PRIORITY
TO COMMONWEALTH OFFICE 14 NOVEMBER 67
D.T.D.
85.
in Kirch
Hw.
TOP COPY
CONFIDENTIAL.
YOUR 236 SAVING: CROSS HARBOUR TUNNEL.
PRACTICAL IMPLICATIONS OF YOUR PARAGRAPH (D)(1) ARE NOT ALTOGETHER CLEAR. PRESUMABLY 18 WOULD COVER ITEMS (1) AND (2) OF THE BREAKDOWN
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IN MY TELEGRAM 1447, 1.E. MAIN CONTRACT POUNDS 3 MILLION AND CONSULTING ENGINEERS FEES POUNDS 1.1 MILLION. IT PRESUMABLY DOES NOT REPEAT NOT COVER (3) INTEREST ON CONTRACTORS FINANCE DURING CONSTRUCTION NOR (4) ROADWORKS REIMBURSABLE TO GOVERNMENT. ITEM (7) DOES NOT ARISE IN THIS CONTEXT. ITEMS (5) OTHER EXPENDITURE DURING CONSTRUCTION NOT IN MAIN CONTRACT AND (6) CONTINGENCIES ARE MORE DIFFICULT.
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2. QUESTION HAS ALSO ARISEN OF EFFECT OY BANK LOAN AND ECGD
S
GUARANTEE OF ANY REDUCTION IN EXPENDITURE ARIZING FROM POSSIBLE
DECISIONS TO POSTPONE SOME LESS ESSENTIAL FEATURES OF THE
STUNNEL. THE COMPANY ASSUME THAT SUCH CUTS WOULD REDUCE BANK LOAN
AND ECGD GUARANTEE BY 75% OF CUT, SHAREHOLDERS' FINANCE BEING
REDUCED BY THE REMAINING 25%.
3. GRATEFUL FOR URGENT ADVICE ON THESE TWO POINTS.
GOVERNOR.
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SENT 0935/14Z NOV
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RECD 0940/14Z NOV
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RECEIVED, IN
ARCHIVES No. 63
15 NOV1967
HWB 21/5.
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