TNAG-0098-FCO40-134-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 73

Mr. Reed

August Meeting of BNEC

(Asia Committee)

HONG KONG TUNNEL

2.

You should know that :-

(a) Lord Shepherd has written to Lord Brown

(B O.T.) asking for reconsideration of the requirement of a joint guarantee from the shareholders;

(b)

ECGD have made a further proposition to us with a view to their abandoning that requirement (on the face of it, the proposition does not seem acceptable).

You should not reveal either of these developments. The most you can say, I think, if the matter is raised is that you understand that further interdepartmental discussion is at present taking place about the terms on which ECGD would be prepared to provide cover for the loan finance involved.

8 August, 1968

LAST

R

NY

(W. S. Carter)•