RESTRICTED
REPAYMENT BEGINS AFTER 6 YEARS (ESTIMATED CONSTRUCTION PERIOD BY U.K. CONSORTIUM), AND IS SPREAD OVER A FURTHER 12 YEARS.
TERMS APPLY FOR ANY U.K. LOAN FOR THE PROJECT EXCEEDING
STERLING 10 MILLIONS..
HONG KONG GOVERNMENT GUARANTEE NOT REQUIRED.
LOAN BASED ON 85 PER CENT OF U.K. SUPPLY U.K. CONSORTIUM ARE ALSO FINDING FRONT MONEY (15 PER CENT). UNQUOTE.
ENDS.
3. THEY ASKED FOR EXPLANATION ON EACH POINT. I STRESSED THAT I COULD ONLY EXPLAIN SO FAR AS I WAS INFORMED AND UNDERSTOOD.
AUTHORITATIVE EXPLANATION COULD ONLY BE GIVEN BY ECGD. SUBJECT TO THAT I SPOKE GENERALLY WITHIN THE TERMS AS IN WILLIS COMMUNICATION
TO SCHALLEHN ON 27 MARCH.
4. IN RESPONSE TO DIRECT QUESTIONS I MADE THE FOLLOWING SPECIFIC
POINTS.
4.1 CAPITALISATION, THERE HAS BEEN NO FIRM COMMITMENT ON THIS.
THE QUESTION HAS BEEN RAISED AND MERELY TAKEN UNDER ADVISEMENT. IT IS NOT THEREFORE POSSIBLE TO SAY WHAT PERIOD IT WOULD COVER, OR HOW IT WOULD BE DONE, IF AGREED IN PRINCIPLE.
4.2 REPAYMENTS PERIOD. THIS IS ENVISAGED AS 24 EQUAL PAYMENTS SPREAD OVER 12 YEARS. THE DATE OF COMMENCEMENT OF PAYMENT HAS NOT YET BEEN SETTLED. IT DEPENDS ON WHAT IS SEEN AS CONSTITUTING
QUOTE A STAGE UNQUOTE.
4.3. COVER FOR OTHER CONSORTIUM. I HAD NO KNOWLEDGE OF ANY OFFER TO GIVE SAME COVER FOR ANY LOAN OVER POUNDS STERLING 10M. TERMS
PROPOSED ARE FOR A WHOLLY BRITISH CONSORTIUM. ANY OTHER PROPOSAL WILL HAVE TO BE CONSIDERED AT INITIO ON ITS MERITS INCLUDING SUCH FACTORS AS PERCENTAGE OF CONTRACT GOING TO U.K., AND TERMS OFFERED BY OTHER PARTNERS. TO MY KNOWLEDGE G.K.N. HAD NOT YET MADE A FORMAL APPROACH GIVING ALL THE NECESSARY INFORMATION AND NO OFFER HAD
THEREFORE BEEN MADE.
RESTRICTED
14.4.
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