TNAG-0206-FCO40-242-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 153

+n!? m " % 5=¢*7}6***སའཁྲུས་རྣམL 34#eL

CONFIDENTI AL

-2-

FROM THIS GOVERNMENT SEMI COLON I AM AWARE THAT THERE WAS A

SECONDARY CONSIDERATION RELATING TO THE COMMERCIAL RISKS

INVOLVED AND THE LOW RATIO OF EQUITY TO LOAN CAPITAL PROPOSED BUT THIS NATURALLY PLAYS NO PART IN THE CONSTRUCTION PUT ON THE REQUIREMENT BY PUBLIC OPINION.

4. I DO NOT KNOW WHETHER ANY FURTHER CONSIDERATION HAS BEEN GIVEN IN LONDON SINCE THE FRENCH OFFER BECAME KNOWN BUT I

WOULD URGE THAT THE MATTER SHOULD BE RECONSIDERED URGENTLY

IN THE LIGHT NOT ONLY OF BRITAIN'S COMMERCIAL INTEREST BUT

ALSO OF THE POLITICAL CONSEQUENCES I HAVE REFERRED TO.

5. THERE WOULD BE SUBSTANTIAL ADVANTAGES FOR HONG KONG IN

RESUSCITATING THE COSTAIN CONTRACT FOR THAT WOULD AVOID THE

DELAY AND POSSIBLE DIFFICULTY IN NEGOTIATING A SATISFACTORY

CONTRACT WITH DUMEZ SEMI COLON WHILE RATE OF INTEREST IS

SUBSTANTIALLY LOWER THAN THE FRENCH OFFER OF 8 PER CENT

INCLUDING ALL CHARGES)

SIR D TRENCH

FILES

HONG KONG DEPT.

FAR. EASTERN DEPT.

F.P. & A.D.

WESTERN EUROPEAN DEPT.

EXPORT PROMOTION DEPT.

SIR A. GALSWORTHY

MR. MORETON.

XXXXX

CONFIDENTIAL