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W(B)L 51-7406
estimates were prepared on the basis of
international tender. But we have reason to
believe that (iii) – (v) are estimates by the
Hong Kong Public Works Department based on local performance. This could mean that the estimates for these items might be on the low
side if the project were undertaken by an outside contractor and, possibly, that the
estimated export content in these items is on
the low side. Equally it could mean that we
might encounter difficulties with the Hong Kong Government in putting to them the
proposition that the entire project should be
undertaken by a British contractor.
5.
Given that the project throws up a
sizeable British export content of the order of £6 million, our present thinking is that
the loan should be related to that figure and not to any local expenditure.
6. If you could indicate agreement in
principle that provided the entire project were
undertaken by a British contractor it would be
eligible for ECGD-backed financial assistance to the extent of its export content (ie. approximately £6 million) we would propose to approach the Hong Kong Government indicating
the lines on which they might make formal application to you (which could be sent direct to you or through us, as you prefer). For this purpose it occurs to us that we should
from you
need the following additional basic
A
information
(a) An indication of the terms on which "project credit" would be available (in particular, term of loan and charges):
(b) Whether a necessary preliminary
would be a consultant's report
covering the entire project:
(c) Where responsibility would lie for
securing the necessary finance
(which would presumably come from a bank);
the point is whether you
would introduce the Hong Kong
Government to a prospective source
/ or the
No comments yet.
Private notes are available after approval.