CONFIDENTIAL
3
2.
(v) in the event of the guarantee
being called the Hong Kong
Government will exercise itsbast
endeavours to recover payment from
the Tunnel Company and any suns
recovered shall be shared equally
between the Hong Kong Government
and H.M.C.
It is understood that Tunnel Company
shareholders will receive no interest on their
investment during the period of construction
(they will, however, receive stook worth $120
million for their $110 million outlay on
completion of the construction). It is understood
that the liong Kong Government would authorise
the royalties payable by the Tunnol to be
reduced from the 12% presently envisaged to 7%
if this were necessary to enable the Tunnel
Company to meet its obligations in respect of the
loan and interest.
3. We should be grateful to learn whether
these terms are acceptable to the liong Kong
Government.
No comments yet.
Private notes are available after approval.