TNAG-0098-FCO40-134-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 55

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Government in the U.K. could be justified, unless the Hong

Kong Government had agreed with E.C.G.D. that, in consideration

of their giving a guarantee to the U.K. banks, the Hong Kong

Government would make good any sum that E. C. G. D. had to pay

in fulfilment of such a guarantee.

3. For one Government department to give another Government

department an assurance on the lines proposed in these papers

amounts to no more than an expression of intention on the part

of the British Government; and for the reasons that I have

stated in the previous paragraph, the implementation of such an

intention could not, in the circumstances, be justified.

4. It follows from what I have stated above that H.M.G. would

probably not accept responsibility for any claims against the

Hong Kong Government; and anyhow unless the Government of Hong

Kong 18 made a party to the proposal by giving some guarantee

to, or charge in favour of, E.C.G.D. there cannot really be any

question of the U.K. assets of the Hong Kong Government being

used to meet any claims by E. C.G.D. for reimbursement.

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