TNAG-0097-FCO40-133-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 86

HWB.21/5

LETTER

M. Montague Esq.,

B.N.E.C. Asia,

6-14, Dean Farrar Street,

London, S.W.1.

2

Minister of State

Flag "C"

Thank you for your note of 25th October.

I enjoyed my visit to Hong Kong and found it

particularly valuable.

We are aware that Costains are fretting over the

Tunnel delays but gather that this is on personnel and

planning grounds rather than financial.

Details have now been worked out with Hong Kong

officials concerning the governmental guarantees that

E.C.G.D. require and I hope that, as a result, there will

be no difficulty about obtaining agreement in Hong Kong

to this particular requirement. But, as you may know,

the Tunnel Company has not yet been abbe to find the

£1.475 million capital shortfall that was caused by the

main shareholders 'decision to reduce the amount of

capital they were prepared to put up. This money must,

I fear, be found in Hong Kong.