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French. I would hope that our correspondence last year about the possible risks of a Chinese takeover has satisfied you on this particular score, although I must say that some here (and apparently many in Hong Kong) still feel lingering doubts that this point must have played some part in your assessment of the terms necessary to cover the commercial risk; in particular your requirement of a joint guarantee. It does seem to us that several guarantees from the share- holders would meet the commercial considerations set out in paragraph (d) above and there is, I think, reason to believe that the shareholders would now provide these.
6. Since the time available to us seems to be so short I wonder whether there is any justification for delaying further consideration of our position until the return of Mr. Whittaker (of ECGD) from Paris, or indeed for us pursuing the matter there at all. On the information available to us his French colleagues in COFACE have already made up their minds. But if you consider that he should take this up in Paris as planned I must sound a note of warning. There would be grave consequences if these exchanges between COFACE and ECGD became publicly known; they would be open to the construction that we, having declined to assist, were trying to frustrate a French deal. It would be even more unfortunate and embarrassing if these exchanges, which have so far been restricted to strictly commercial considerations, were widened to include discussions of the political risk and this, I trust, will be avoided at all costs.
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