TNAG-0098-FCO40-134-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 53

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HWB 21/5

CONFIDENTIAL

Matthew Parker Street,

9 September, 1968.

154

I refer to your letter SL/CW 24126/35 of 31 July, 1968

addressed to Lucas about the Hong Kong Tunnel, to which I am

replying in Carter's absence.

The legal advice we have received (I attach the opinion

of one of our legal advisers) indicates quite clearly that, in

the absence of a Hong Kong Government guarantee for the whole

loan, we cannot give you the undertaking you seek. Even were

the Hong Kong Government to give such a guarantee we would find

it difficult to give you "an unsubordinated right of access"

over all other claims on the Hong Kong Government assets.

LAST

125

REF.

RÉXI

RCF.

(R. H. MASON)

K. W. Cotterill, Esq.,

Export Credits Guarantee Department, 59-67, Gresham Street,

E.C.2.

CONFIDENTIAL