سعد معنا
M... Alvard to see
Treasury Chambers
Parliament Street London SW1P 3AG
Telex 262405
Mr. Googlettand
RECEIVED IN REGISTRY No. 43
45
(I have jus
need this)
the PA
#
27 MAR 1974
26.
Telephone 01-930 1234 ext
MTM 3/393/1
E J Jackeon Esq
Export Credits Guarantee Department
Aldermanbury House:
Aldermanbury
LONDON EC2
RB211 ENGINES:
RECEIVED IN REGISTRY No. 51
-3 MAY 1974
HKK 21/12.
Your reference
BC/AAR/24/96041
Our reference
2FE17/227/01
Date
22 March 1974
CATHAY PACIFIC AIRWAYS, HONG KONG
NOT
PA
231=
اذا
M
1. We discussed your letter of 8 March about this. In the light of resent Press reports, you told me that it was now uncertain how this deal would be set up. The latest reports suggest that a straightforward sale is more likely than leasing, since the Tri-Star has been chosen in preference to the DC10.
2.
On export credit grounds, the proposed arrangements are objectionable As you know, it is accepted internationally that the maximum credit period for aircraft exports is 10 years and we are trying to get an OECD agree- ment to this effect on its feet. It would apply to all officially- supported transactions. In the discussions, there have been unfavourable
• references to the US practice of leasing on much longer terms, but the Americans have been at pairs to point out that such practice does not attract official support. I am a little surprised, therefore, that Airlease International Management Ltd think that they will be able to obtain a 15 years loan from the US Eximbank. However that may be, in the international discussions the French are trying to reserve the right to offer longer terms for leasing. We and others are opposing this, and it is important that we should continue to do so, since such an approach would badly undermine the value of the proposed agreement. The argument turns on the private nature of the US arrangements, which have no Government support, and American officials are as anxious as ourselves to limit the maximum period qualifying for official support to 10 years.
3. To accept the proposition Airlease have put forward would hardly be consistent with our stance in OECD. Moreover, it would leave us vulnerable to a charge of official support for a 15 years lease. Whatever way it is looked at, ECGD would be supporting a transaction the end result of which would be to put aircraft in the hands of an overseas operator on terms which we and all our OECD partners (except the French) have decided to oppose. Among other things, this would be bound to weaken our chances of persuading the French that they are being unreasonable. For these reasons, we are not willing to approve cover on the basis proposed by
Airlease.
I have
discussed
who fells
Calls we
this with TRED (ther. Holland)
م مخدا کنه
CPA
an Racher
based
posibility they
müpler
lease
that ins head of selling
buying
the planes be the event CPA bought.!
then. fu
(see 41). ECGD have Jay authority to underwick
مال
соибласт
is
was £9 m. for 3 planes. the prefers can the last
to
laves and
confirmed then VERGD
CA
الا
لي
لطالما سمانة
ther 2.
lapproach day apdary cuties
buyo
ho
PA / 312
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