CONFIDENTIAL
Hong Kong Government were to give a guarantee of
repayment as the Japanese bid anticipates, the UK
Government would be obliged publicly to state that
the UK Government's credit was not thereby committed.
Reactions to such a declaration in Hong Kong are for
Won't you should know
you but I should warn you that in the UK there could
well be a hostile reaction both in Parliament and the
press if it became known that the Hong Kong Government's
concession on the question of the guarantee had enabled
the Japanese to win the contract. I am sure I can rely
on you to see to it that these points are given their
full weight when the Hong Kong Government decides how
the bids are to be handled.
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