TNAG-0206-FCO40-242-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 162

CYPHER/CAT A

INMEDIATE HONG KONG

TEL NO EXCED 128

CONFIDENTIAL.

CONFIDENTIAL

S

TO EXPORT CREDITS GUARANTEE

20 DECEMBER 1968

DEPARTMENT

ADDRESSED E.C.G.D. AS MY TELEGRAM NO. EXCED 128 DATED 20TH DECEMBER REPEATED FOR INFORMATION TO BOARD OF TRADE (CRED) AND FCO,

FROM HANNAM, BRITISH TRADE COMMISSION,

CROSS HARBOUR TUNNEL» ·

YOU WILL REMEMBER THAT IN MY LETTER OF 19TH NOVEMBER TO GOVERS, C.R.E. COPIED TO YOU I MENTIONED THE POSSIBILITY OF FRENCH FINANCE

FOR THIS SCHEME.

2 I HAVE THIS AFTERNOON SEEN AN INCOMING CABLE TO THE TUNNEL

*

COMPANY FROM GEORGES OF THE SOCIETE GENERALE IN PARIS. I WAS UNABLE TO TAKE NOTES BUT THE SALIENT POINTS WERE THAT THE FRENCH DANK WILL AGREE TO FINANCE THE LOAN TO THE TUNNEL COMPANY ON TERMS WHICH DO NOT CREPEAT) NOT ENVISAGE ANY GOVERNMENT OR OTHER GUARANTZE BEING

GIVEN.

3. THE CABLE MENTIONED THAT THE TUNNEL COMPANY WOULD HAVE TO PAY 10 PERCENT ON SIGNATURE, 10 PERCENT IN THE EIGHTEENTH MONTH AND 5 PERCENT IN THE THIRTIETH MONTH. THE BALANCE IS. TO BE RECOVERED UP TO THE NINTH YEAR AFTER SIGNATURE, THE RATE OF INTEREST 15 8 PERCENT, THE SECURITY IS A MORTGAGE ON THE TUNNEL COMPANY AND 17S REVENUES UNTIL PRINCIPAL AND INTEREST ARE REPAID IN ACCORDANCE WITH THE

TERMS.

B

4. THE SOCIETE GENERALE NOMINATES DUMEZ AS THE CONTRACTOR AND IT IS UNDERSTOOD THAT THEY WILL BE WILLING TO DO THE JOB FOR THE SAME

PRICE AND ON THE SAME TERMS AS COSTAINES.

15.

THE CABLE

CONFIDENTIAL