loans is not as high as in the London market but
'soft' money.
at 6% it is by no means 'soft'
(c)
Although the Bank has ample funds, there is a long list of loan applicants in the pipeline, the Bank's
staff is somewhat inexperienced and considerable delay
in the processing of applications is inevitable.
+
(a)
The Board of Directors, in consequence of events connected with Hong Kong's accession to membership, tends to be suspicious of Britain's intentions in regard to her responsibilities towards Hong Kong (i.e. that we intend to 'wish' them onto the Bank) and these suspicions would undoubtedly be confirmed if we were to sponsor a loan
request at this time.
In the ODM's view there is no possibility of the ADB loaning £6m. for this project. The possibility of joint HMG/ADB financing, with the Bank advancing up to 50% of the proposed sum, would by no means be certain of success and could involve long-drawn-out and embarrassing negotiations. The ODM see little point in initiating even informal
enquiries at the Bank unless it could be on the basis of a reasonable
assurance that HMG would take up 50% of a proposed joint loan and would charge the Bank's going rate of interest (67%).
25. The Gas Council and British European Airways have recently raised loans on the Continent and local authorities are being encouraged to
look in the same direction. The Treasury have suggested that the
Dutch should be asked to provide finance for the project in return for the grant of the traffic rights they are seeking for KLM at Hong Kong. This suggestion has been opposed on the grounds that the proposition
would probably be condemned as discriminatory treatment in the terms
-12-
No comments yet.
Private notes are available after approval.