(118281) Dd. 391599 1,500M 2/69 Hw.
NOTHING TO BE WRITTEN IN THIS MARGIN
Registry No.
SECURITY CLASSIFICATION
Top Secret.
Secret.
Confidential.
Restricted. Unclassified.
PRIVACY MARKING
In Confidence
DRAFT Notes for Supplementaries Type 1 +
To:-
From
Telephone No. & Ext.
Department
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 pre-
pared in principle to cover the loan which represents
75% of the Contract Value up to a maximum of £14 million
repayable over 7 years from completion of the tunnel.
5. The E.C.G.D. support is being provided in accor-
dance with that Department's normal underwriting
criteria.
6. The loan and contractual arrangements are entirely
Disclosure of detailed arrangements might
commercial.
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.
1
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