TNAG-0423-FCO40-469-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 54

Copy for A.C.Stuart, Esq.,

F.C.O.

[Dear Ron,

}

LAST

RU

(145)

BANK OF ENGLAND

6th July 1973.

147)

Hong Kong Mass Transit System

Further to my letter of the 5th July we have made a further calculation of the export credit subsidy element involved in the latest proposals but with the assumption that there is no capitalisation of interest 1.0., pre-completion interest. Payments are made when due. This calculation is on a similar basis to (1) in my letter of the 5th July and thus does not take into account any E.E.C. cloment or bank commissions.

HK$ mas.

Present value of loan

(a)

2,147.1

Present value of receipts

(capital and interest)

(b)

1,859.9

Present value of exports

assuming that the timing

of exports coincides with

that of the loan drawings) (c)

This results in a subsidy to U.K. exports [(a) (o)) of 13.4%.

2,147.1

(b) as a percentage of

I am copying this letter to Cotterill and Coggins (C.C.G.D.) Clavos-Smith and Miss Lackey (D.T.I.), Finlayson and Stuart (F.c.o.) and Wilshire (0.D.A.).

1

R. Jones, Esq., [H.M.Treasury,

Great George Street, London SW1P 3AG.]

[Yours sincerely,]

(Signed) G. M. LAMBERT