TNAG-0206-FCO40-242-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 32

CYPHER/CAT À ⠀

ROUTINE HONG KONG

TEL NUMBER EXCED 33

CONFIDENTIAL

67

TO EXPORT CREDITS GUARANTEE DEPT.

DATE 15 FEBRUARY 1969

66

CONFIDENTIAL.

FOR COTTERILL FROM HANNAM.

TUNNEL.

FURTHER TO MY EXCED 31 AND TO MY LETTER CF 14 FEBRUARY IN THE BAG.

YOU WILL KNOW THAT I HAVE RELIED HEAVILY ON DEREK HILL'S ADVICE

EVER SINCE THE TUNNEL CUESTION STARTED. IN DISCUSSING THE LATEST

EXCHANGES WITH HIM, I FIND THERE IS ONE IMPORTANT GAP IN MY

KNOWLEDGE, VIZ DO YOU OR DO YOU NOT WANT A MORTGAGE ON THE TUNNEL.

AND ITS FIXED ASSETS ?

2. YOU KNOW THAT THE FRENCH REQUIRE SUCH A MORTGAGE, BUT MY BELIEF.

UP TO NOW HAS BEEN THAT YOU PREFER TO TRUST TO GUARANTEES.

3. IT CCCURS TO ME THAT CLAGUE MAY BE UNDER A MISAPPREHENSION DUE

TO THE FRENCH REQUIREMENT. THIS MIGHT ACCOUNT FOR HIS HARPING ON

THE THEME THAT E.C.G.D. REQUIRE A DOUBLE REINSURANCE, FIRSTLY A

GUARANTEE FROM THE SEVERAL SHAREHOLDERS AND SECONDLY A LIEN ON THE

TUNNEL ITSELF. WHEN HE SPOKE I THOUGHT HE WAS REFERRING TO THE FUND

YOU INTEND TO SET UP, BUT LOCKING BACK AT IT I THINK HE MIGHT HAVE

A MORTGAGE IN HIS MIND.

SIR D.TRENCH

EXCED DISTRIBUTION H.K.D.

1..

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CONFIDENTIAL