TNAG-0206-FCO40-242-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 29

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OUT TO HONG KONG TELNO EXCED 0933 OF 19/2 UNIT 3 CYPHER/CAT-A- 1.F.S.

IMMEDIATE

CONFIDENTIAL.

Copy for Head & Hong Kong Rept

the Graham,

Export formation Dept.

NO COPIES MARE

for

FOR HANNAM FROM COTTERILL. TUNNEL. YOUR LETTER OF 14TH FEBRUARY. NOTE

YOU SUGGESTED TO CLAGUE THAT HE SHOULD GO TO THE HONG KONG GOVERNMENT

AND THE HONGSHAI BANK AND ENQUIRE ABOUTH THEIR ATTITUDE TO THE

GUARANTEES. YOUR PARA 10 GIVES INDICATION OF GENERAL ATTITUDE OF THE GOVERNMENT, BUT IT WOULD BE INTERSTING TO KNOW MORE ABOUT THE ''LOT OF SMALL PRINT WHICH HAD TO BE ADJUSTED''. SO FAR AS THE BANK IS CONCERNED, CAN I CONTINUE TO ASSUME THAT THEY ARE LIKELY TO FOLLOW THE GOVERNMENT LINE?

2. YOUR EXCED 33. LIEN ON EARNINGS AND MOTGAGE ON TUNNEL WERE

OFFERED TO FRENCH. WE WISH TO REACH MUTUALLY ACCEPTABLE ARRANGE-

MENTS WITH TUNNEL COMPANY ON SECONDARY SECURITY (1.E. OTHER THAN SEVERAL GUARANTEES) AND LIEN PLUS MORTGAGE PROPOSALS ARE ONE OF

THE NUMBER OF POSSIBILITIES. WE WOULD PREFER TO PURSUE THE PROPOSAL

TO SET UP A FUND. BUT ALL THIS IS FOR NEGOTIATION BETWEEN US ONCE

THE TUNNEL COMPANY AGREE TO OUR SEVERAL GUARANTEE PROPOSAL.

STEWART.

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