EXPORT CREDITS GUARANTEE DEPARTMENT
P.O. BOX NO. 272, ALDERMANBURY HOUSE, ALDERMANBURY, LONDON EC2P 2EL
Telex: 883601
Telephone: 01-606 6699
I E Rich Esq
HM Treasury
Great George Street
LONDON
SW1P 3AG
XPORT
+3.GUARA
INTEE
CREDITS
DEPARTM
Your reference
RECEIVED IN REGISTRY No. 51
Our reference
2F 45/211/014 2FE 17/227/01
BC/AIR/24/96041
2 5 JUN 1974
Date
21 June 1974
HKK 2111
2
Dear
EGC CASE NO 1211
RB211 PROGRAMME ECGD COVER
SALES TO CATHAY PACIFIC AIRWAYS LIMITED, HONG KONG
In your letter of 21 January 1974 (ref 2F 45/211/014) you gave authority for us to cover under Section 2 the sale to Cathay Pacific Airways Limited of 9 installed RB211 engines and spares to a total value of £9,000,000.
Subsequently the possibility of setting up the deal as a leasing operation on 15 years' terms was explored and Eric Jackson wrote to you on 8 March 1974 seeking authority for us to cover on that basis. You rejected this in your letter of 22 March 1974 (Ref 2FE 17/227/01). We were later informed by Rolls-Royce (1971). Limited that the transaction would after all be going through as a straightforward sale of installed engines and spares for two aircraft with options on engines for two more aircraft.
The position now, however, is that Cathay Pacific Airways Limited will possibly place a firm order with Rolls-Royce for installed engines for 4 aircraft plus opare engines and spares of a total contract price of £13,236,886. Terms of payment will be as set out in my letter of 7 January 1974. We shall be stipulating as a condition of cover the unconditional guarantee of Hong Kong and Shanghai Banking Corporation in respect of the credit portion of the contract price.
I shall be grateful if you would give your approval to our providing a Buyer Credit Facility under Section 2 in connection with this sale on the basis of the revised contract price.
Yours sincerely
DM Jaffray
CC
G M Lambert
TJ Wilshire
S N Chilton
10.
Yes
PA -25. Halland
Ur. Goodfellows You will by now Law seen a copy
Тисабону
approving their cover.
lettes of 28 Junx
You
aware
the
lile
Challay any of this purchase.
Bank of England
ODA
DoT
ERC Holland
FCO
RJ Sanders
MOD
V I Chapman )
K G Lockwood ) C M Bossom
ECGD
417 TREA
were
моб го ве
very foolish if Jay With coming; suppor
We
Should vest? Could
likely
request? there
there
عنا العليا
advice
го
this ECGD
our
be difficulty? quarafufion
No comments yet.
Private notes are available after approval.