TNAG-0207-FCO40-243-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 64

Mr. Carter

Reference........HKK 21/4..

109

105

I understand that Sir A. Percival, ECGD Secretary, is going to lead the negotiations with the Tunnel Company, ECGD being aware of complaints that last time they were represented on too low a level. I do not know whether this means that Sir Arthur Galsworthy spoke to Sir A. Percival before he went away, but in any case it means I think that we should take no further action.

2.

ECGD have already received from Hong Kong a copy of the draft letter referred to in telegram EXCED 64 which Mr. Brothers was showing to Mr. Hannam. Mr. Mann, ECGD, tells me that the Company has set a target date of mid-May to complete their negotiations with Costains and their financial arrangements with the Department. This eagerness on the part of the Company to conclude negotiations is the strongest bargaining counter left to ECGD. A successful conclusion is now regarded by ECGD as a fait accompli and the French seem to have dropped out of the picture.

31 March, 1969

Илии

(H. H. Stewart) Hong Kong Department