THE CROSS HARBOUR TUNNET (O LID
2.
8th March, 1968.
c) Interest at 51% p.a. plus usual banking and management
charges.
d) Lien on Tunnel Revenues.
e) In the event of non-payment by the Tunnel Company due to causes other than political, the shareholders of the Company will continue repayments when due in proportion to their shareholdings in, the Tunnel Company.
f) A fund of approximately £100,000 p.a. be set-up and held in London to cover E.C.G.D. against any loss arising from a political cause.
All the above points were accepted by E.C.G.D, before the difficulties in Hong Kong last Summer and indeed the Company has never been directly informed by E.C.G.D. that it does not now intend to abide by the above proposals since all subsequent communications have been through the Hongkong Government.
The Company will also request E.C.G.D. to accept that:-
(1) No limit be placed to the 75% finance on the contract cost.
(2) The fees payable to the British Consulting Engineers (who
during the contract period act both for the contractor and the client) be included in the main contract thereby enabling the Company to obtain benefit of the overall finance negotiated. The fees are estimated to amount to some $12 million.
5. Richard Costain have confirmed that they are ready to go ahead and that the contract could be completed and signed within a month of the financing side being concluded.
6.
With agreement from the Hongkong Government and E.C.G.D., the green light could be given immediately.
P. A. L. Vine, Legal Adviser.
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Private notes are available after approval.