TNAG-0098-FCO40-134-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 103

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SL/CE 24126/35 Pt.3.

16th May, 1968.

Hong Kong Harbour Tunnel

As agreed at yesterday's meeting I attach a copy of the draft note which I have today sent forward to the office of the Parliamentary Secretary in the Board of Trade for onward submission to the Prime Minister's office.

2. I think this accords with the terms of what we agreed yesterday with the exception possibly of Paragraph 5. This was inserted by Tony Percival after he had had some discussion with the Permanent Secretary in the Board of Trade who has been approached by a representative of Freeman, Fox and Partners about the conditions of this loan. Paragraph 5 as you will see attempts to counter the suggestion that under the terms of Section 2 of the Export Guarantees Act might accept the political risk without guarantees.

3.

If you or Carter to whom I am copying this feel that anything in the draft is too outrageously out of line perhaps you will give me a call early Friday morning.

C. C. Lucas, Sq•,

H. M. Treasury, Great George Street, London, S.W.1.

(K. W. Cotterill)