TNAG-0206-FCO40-242-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 87

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Hong Kong apt

OUT TO HONG KONG TELNO EXCED 20 OF 31/1 CYPHER/CAT A UNIT 2 BAMFORD

IMMEDIATE

CYPHER/CAT A

NO COPIES MADE

IMMEDIATE EXPORT CREDIT GUARANTEES DEPT. TELEGRAM NUMBER EXCED 20

TO HONG KONG

31 JANUARY 1969

CONFIDENTIAL

FOR HANNAM FROM COTTERILL. CROSS HARBOUR TUNNEL. YOUR EXCED 19. REGRET DELAY WHICH ON THIS OCCASION WAS NONE OF OUR DOING.

2. SEVERAL GUARANTEES WOULD CONTINUE TO BE INVOKED WHATEVER THE CAUSE SO LONG AS GUARANTORS OR THE TUNNEL COMPANY CONTINUED TO OPERATE IN HONG KONG. IF OPERATION CEASED BY REASON OF COMPLETE FOREIGN TAKEOVER IT WOULD NO LONGER BE POSSIBLE TO DO SO. 3. WE WOULD REQUIRE TO BE SATISFIED THAT THE TUNNEL COMPANY ASSETS WERE NOT BEING SIPHONED OFF, AND FOR THIS PURPOSE WOULD WISH TO CONSIDER LIMITING DIVIDENDS AND SETTING UP SOME FORM OF FUND INTO WHICH NET PROFITS OF THE TUNNEL OPERATION WERE PAID FOR THE BENEFIT OF THE LENDER IN CASE OF NEED. WE WOULD ALSO REQUIRE ASSURANCE FROM GOVERNMENT THAT TUNNEL TOLL CHARGES WOULD BE MAINTAINED AT RATES THAT WOULD ENABLE VIABLE OPERATION IN COMPETITION WITH OTHER FORMS OF TRANSPORT.

STEWART

LAST

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REF.

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