TNAG-0207-FCO40-243-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 65

THE CROSS-HARBOUR TUNNEL CO., LTD.

GENERAL MANAGERS

SECRETARIES : WHEELOCK MARDEN & CO. LTD.

12TH FLOOR, UNION HOUSE, HONG KONG CABLE ADDRESS SEATUNNEL TEL. 221111 TLX. HKG312

vate and Confidential

K. W. Cotterill, Esq.,

Export Credits Guarantee Department,

Barrington House,

59/67, Gresham Street,

LONDON E.C.2.

29th March, 1969.

香港隧道有限公司

109

Dear Mr. Cotterill,

I am doing You will note

I am taking the opportunity of asking one of Costains' team, Mr. Robarts, who is returning to London this evening to bring with him a copy of a letter which Mr. J. L. Marden has sent today to the British Trade Commissioner. this in the interest of speed and with the blessing of Mr. Hannam. that we have been able to persuade our shareholders including the Hongkong Government and The Hongkong and Shanghai Banking Corporation to agree to give several guarantees in proportion to their holdings. The definition of "political risk" has been proposed by the Hongkong Bank as the formula recently suggested by yourselves would not fit in with their international banking position. It is very similar to the definition proposed by yourselves in May 1967 and I hope it is acceptable. The Reserve Fund as proposed by you has been accepted outright.

xin

Now that the guarantee question has been resolved it is hoped that agreement in principle on all the main terms and conditions can be reached very quickly. We would suggest not later than 11th April, 1969. This will enable full-scale contractual negotiations to be commenced with Costains to meet the target date for the contract award of May 20th. Do you foresee any difficulty in having the finance agreement drafted and ready by that date?

I know you have spent many long hours on this project as have we all. The business climate is now favourable in Hong Kong and there is a general desire by all parties concerned, including the Hongkong Government, for work on the Tunnel to start without further delay. We are optimistic and feel that with your co-operation

this goal can be obtained.

RJFB:ybf

With kindest regards.

c.c. Mr. Hannam, British Trade Commissioner.

Yours sincere

other

R. J. F. Brothers