(134392) Dd. 737115 750M 4/70 Hw.
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Registry
No.
SECURITY CLASSIFICATION
Top Secret.
Secret.
Confidential.
Restricted.
Unclassified.
PRIVACY MARKING
In Confidence
DRAFT
To:-
D.L. Hawkins, Esq.,
H.M. Treasury,
Gt.George Street,
S.W.1.
Type 1 +
From
J.M.Willson, E.P.D.
Telephone No. & Ext.
Department
Financial Guarantees Committee Case
No. 903 Hong Kong Underground Railway
Thank you for your letter of 26 November about
ECGD credit terms for the proposed underground railway
project in Hong Kong.
2.
The consultant firm Freeman Fox and Partners
have presented their report to the Hong Kong Government
who have it under study. In October the Hong Kong
Government announced that it is unlikely that any
decision on a scheme of such magnitude will be made
in under six months. According to the Commissioner of
Transport, the period of amortization of the cost of
the scheme would not be longer than 10 years at the
most and the general view in Hong Kong Government
circles and of most knowledgeable resident Europeans
is that the political risk is less than in almost any
South East Asian country.
3. The Japanese will no doubt be prepared to go to
extreme lengths to obtain this contract and there is
a possibility that tenders from Japan might be
subsidised by their Government. On a straight price
probably
comparison, therefore, Japan could/submit more
attractive offers than British firms would be able to
quote.
4. It is probable that, as in the case of the Cross-
/Harbour....
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