TNAG-0276-FCO40-312-Plans-for-construction-of-underground-railway-system-in-Hong-1970 — Page 74

Our reference: GD 4072/1

Your reference:

DL Hawkins Bsq

HM Treasury

Great George Street

London SW1

BOARD OF TRADE

Export Planning and Development Divizi on

1 Victoria Street, LONDON S.W.1

Telex:

66 Answer Back: BOTHQ LONDON Telegrams: Advantage London S.W.1

Telephone:

$

St.-27366

12 October 1970

ら

Hong Kay Dyk

12

BPD 17/10

Dear Hawkins

FINANCIAL GUARANTEES COMMITTER

CASE No. 903 - HONG KONG UNDERGROUND RAILWAY

1 I refer to Hooker's letter of 9 September, which I discussed with him on 8 October.

•

2.

It is clearly too early to consider in detail the terma ECGD might make available for this project; no firm preposition is likely for at least another six months. But it is perhaps worth saying now that, in view of the past history of the tunnel project, which soured our commercial relations with the Colony, an over-cautious response to any proposition that may emerge might well play into the hands of those who would not like to see the United Kingdom obtain a share of this business.

3. If this was generally agreeable, perhaps ECGD should let it be known that it cannot at this stage indicate what terms and conditions will apply until a firm proposition is received. If, as seems likely, the credit involved is considerable, then adequate security will be necessary. But if this is forthcoming, we are prepared to support a financial guarantee facility at the proper time. part of a bigger project, the prospects for our exports will increase; though we must remember that repayments will presumably have to be made well before the expiry of the lease from the Chinese in 1997.

Yours sincerely

(J H Clement)

If this is the first

CP Rawlings NJA Hover G M Lambert,

D A T Thain, J R Beaven, LC Watson, KC Price, P T Harding.

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BC GD

Bank of Engla nå ODM FCO BOT, OPG BOT, CRE2 Min. Tech.

51

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BU 26-10-70

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