TNAG-0207-FCO40-243-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 120

CONFIDENTIAL

2

4. I ASKED WHAT TIMESCALE WE ARE WORKING IN AND WAS TOLD THAT SOMEBODY SHOULD GET THE CONTRACT WITHIN FIVE WEEKS. IT EMERGED

THAT BROTHERS IS TRYING TO REDUCE THE VARIOUS COMPETING FINANCIAL

TERMS TO PAPER. I OBTAINED HIS PROMISE TO SHOW ME HIS DRAFT ON THE

E.C.G.D. OFFER BEFORE IT GOES TO THE BOARD ON MARCH 4 OR 5.

5.

1 WAS ASKED HOW ANY FUTURE CONTACT SHOULD BE MADE WITH

E.C.G.D. I REPLIED THAT COSTAINS ARE THE OFFICIAL CHANNEL,

BUT THAT I WOULD PASS TO YOU ANYTHING I WAS GIVEN.

6.

MARDEN WOULD NOT ANSWER A DIRECT QUESTION AS TO WHO IS

IN THE RUNNING, BUT I GATHERED AN IMPRESSION THAT SWISS

FINANCIAL INTERESTS MAY STILL BE IN THE RACE BESIDES THE FRENCH

THERE AND CURSELVES. THE CHICAGO FIRM SEEMS TO BE OUT OF IT. WAS GENERAL APPRECIATION OF THE WAY YOU HAD COME TO MEET THEIR

VIEWS, BUT SUBSEQUENT DISCUSSION ALWAYS LED THEM TO STRESS THE DRAFTING COMPLEXITIES THAT MUST FLOW FROM YOUR INSISTENCE ON

OBTAINING SEVERAL GUARANTEES FROM ALL FOUNDER SHAREHOLDERS.

1 AGAIN WENT OVER MY EGYPTIAN EXPERIENCE, BUT DID NOT SEEM TO

MAKE MUCH PROGRESS. I STRESSED THAT ONCE THE SEVERAL GUARANTEE

QUESTION IS SETTLED IN THE WAY YOU WANT THEN THE REST IS NEGOTIABLE

AND THAT YOU HAVE NO FIXED PRECONCEIVED IDEAS, BUT INCLINE

TO THE FUND CYOUR EXCED 33). BROTHERS SAID THE ORIGINAL

NEGOTIATIONS ABOUT THE FUND IDEA SEEM PRETTY ACCEPTABLE.

7. I CAME AWAY WITH A FEELING THAT OUR OFFER IS NOW BEING

SERIOUSLY EVALUATED AGAINST THE FRENCH.

SIR D. TRENCH

EXCED DISTRIBUTION

HONG KONG DEPT. AAAAA

CONFIDENTIAL

Page 120Page 121