TNAG-0098-FCO40-134-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 16

a stipulation

M

hold of the

Sent Luo

The offer

would not have

DRAFT

Guverner Hong Kong Confidential Pentine,

Your telegram number 2061.

Harbour Tunnel.

√143/E

E.C.G.D.'s statement to the Press included the following

final sentence:

"It is also necessary, and is a normal "Eepeat

for

normal)" requirement projects of this nature that the Government

or Central Bank of the country concerned should give a guarantee

the

of repayment of/debt.

*

This was a general statement in the light of E.C.G.D.'s

experience. It followed an explanation of reasons why a joint

reasons

and several guarantee is required. These included by implication

the point that in this case no Government or Central Bank guarantee

would be forthcoming.

Replies to your questions at paragraph 2 are

(1) The Tunnel Company have throughout represented

the \ A been mastamed, however, (2)

had the composition of the Tumped Co. been altered at a subsequent stage. I would then have ben reverse, for FCG:) I's reconnider in the light- of the new

w facts.

No

the Hong Kong Government as a shareholder.

question thus arose of making Government partici-

pation as a shareholder a condition of the offer. "formal requirement" should read "normal requirement".

This means that it is highly unusual for a Government

not to associate itself with such a project.

"a project of this nature" means an infrastructural

constructional contract of a public service character

likely to have a major impact on the life of the

community.

"the country concerned" means the country or territory

in which such a project is to be undertaken.

The

term "country" was used in a general sense in referring

to E.C.G.D. common experience throughout the world.