TNAG-0097-FCO40-133-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 70

itw B 12/5.

2 Extra coppies

I for CC Lucas by. Treading

I for KW Cate will tom. ECCD.

3N

SAVIO DESPATCH TO THONG KONG

233

3

V 196?

83

мст

My telogram No.1130 and your No.1344.

Cross Harbour Tunnel.

You will be aware that during a recent

visit to London of your Financial Secretary and

other officials discussions were held on the

terns wherounder E.C.G.D. are prepared to grant

covar for the loan of £10 million from Lloyds

Bank for the Tunnel project, and whereunder H.M.G. subject to Parliamentary moval

can become associated in the required guarantee.

As a result of these discussions the following

terms have been formulatedı-

(a) The Hong Kong Governmont should guarantee

ropayment of the £10 million loan plus

interest by the Tunnel Company on the

appointed dates, making good any failure

or deficiency whether occasioned by

political, technical or operational

causes.

(b) The Hong Kong Government should furnish

this guarantee by issuing an irrevocable

authority to their London Agents or

Bankers to honour within 14 days of

due date

their presente

Promissory Notes

issued by the Tunnel Company and bought

by the leading Bank.

/(o) 1.C.G.D. will