TNAG-0206-FCO40-242-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 102

Reference.....

НКК 21/4

RECORD

Mr. Cotterill, ECGD, phoned to give an account of the stage reached over the Cross Harbour Tunnel negotiations.

2.

ECGD are prepared to relax their terms, in particular their insistence on joint and several guarantees; they would now be content with several guarantees alone. They have told the French what they consider to be the minimum requirements for commercial security and they hope that the French will accept these, thus reaching an equation of terms against which the Company would be free to consider,

joint British/French finance (provided the problems of co-ordination between the contractors could be overcome);

3.

(i)

(ii) French finance alone;

(iii) British finance alone.

They

ECGD obviously hope that the known preference of the Company for a British contractor will induce them to prefer (iii), without their incurring a charge of pushing the French out of the market. have hopes that even if the French undercut the minimum ECGD terms, the Company would still prefer a British contract now that ECGD finance on better terms is within their reach.

4.

ECGD are prepared to go to Paris for further discussions with the French next week. They have told Costains in confidence that they are still in discussion with the French, but no details. They would prefer that we do not tell the Governor any details until there is something more firm to go on: as a shareholder, they regard the Hong Kong Government as an "interested party".

24 January, 1969

Начал

(H. H. Stewart) Hong Kong Department