CYPHER/CAT A
IMMEDIATE HONG KONG
TOP COPY
lor
CONFIDENTIAL
TO FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NUMBER 257
27 MARCH 1969
CONFIDENTIAL
FOLLOWING FOR CARTER FROM COWPERTHWAITE.
CROSS HARBOUR TUNNEL.
AS YOU ARE PROBABLY AWARE, WE HAVE DECIDED IN PRINCIPLE TO SUBSCRIBE
25 PER CENT OF SHARE CAPITAL ON THE BASIS OF SEVERAL GUARANTEES.
WE HAVE NOT YET INFORMED THE COMPANY BUT PROPOSE TO DO SO
TOMORROW 28 MARCH.
2.
THE COMPANY HAS BECOME AWARE OF OUR INTENTION AS IS
OF COURSE FINANCE COMMITTEE AND IT IS MOST DESIRABLE, BECAUSE
OF THE POTENTIAL EFFECT ON STOCK EXCHANGE TRANSACTIONS IN CERTAIN SHARES, THAT THE PUBLIC SHOULD BE INFORMED
AT THE SAME TIME AS THE COMPANY.
3.
WE PROPOSE THEREFORE TO ISSUE THE FOLLOWING PRESS RELEASE
TOMORROW EVENING.
"GOVERNMENT HAS INFORMED THE CROSS HARBOUR TUNNEL COMPANY LTD TODAY THAT IT IS PREPARED IN PRINCIPLE TO SUBSCRIBE 25 PERCENT OF THE COMPANY'S SHARE CAPITAL UP TO A MAXIMUM OF DOLLARS HK TWENTY SEVEN AND A HALF MILLION AND TO GIVE A COUNTER GUARANTEE TO THE BRITISH EXPORT CREDIT GUARANTEE DEPARTMENT OF ITS PROPORTIONATE SHARE OF A BRITISH BANK LOAN OF APPROXIMATELY POUNDS TWELVE AND A HALF MILLION TO BE GUARANTEED BY THAT DEPARTMENT. GOVERNMENT'S AGREEMENT IS CONDITIONAL
AST
/ON
CONFIDENTIAL
RECEIVES DI ARCHIVES N
2 & MARA
HKK 21/4
31
1029103
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