TNAG-0207-FCO40-243-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 27

REFERENCES

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NOTES FOR SUPPLEMENTARIES

1.

The Hong Kong Government is prepared in principle to subscribe 25% of the Company's shareholding subject to the formal approval of the Legislative Council of the Colony.

2. The shareholders (including the Hong Kong Government subject to the approval of Legislative Council) will guarantee repayment of the loan in proportion to their shareholding.

3.

It is true that a French Finance House at the end of 1968

offered to finance this project but in the event their terms

do not seem to have been as acceptable to the Tunnel Company

as the British terms.

4. The Export Credits Guarantee Department is prepared in principle to cover the loan which represents 75% of the Contract Value up to a maximum of £14 million repayable over seven years from completion of the tunnel.

5. The E.C.G.D. support is being provided in accordance with that Department's normal underwriting criteria.

6. The loan and contractual arrangements are entirely commercial Disclosure of detailed arrangements might prejudice the outcome of the negotiations which are still in progress.

7. The tunnel will provide a much needed traffic link between Hong Kong Island and the City of Kowloon, a crossing which up to now has been served only by vehicular ferries.

8.

The Consulting Engineers to the project are the British firms of Scott and Wilson, Kirkpatrick & Partners and Freeman, Fox and Partners.