TNAG-0564-FCO40-659-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 49

REDITS

RÉGEN. IN

REGISTRY No, 50

- 3 SEP1975

14KX 21/4

Mass J Kelley Treasury Chambers Parliament Street

LONDON

SW1P 3AG

Dear Jones

Telephone: 01-606 6699

Ext 256

DETA

Aldermanbury House

Aldermanbury

London, EC2P 2EL

Telex 883601

(73)

Cory HKEIT,

་་

HK MTM flake NADEN

3/11 September 1975

LARO

(69

then

व्हि

PA

RECEIVED IN REGISTRY No. 43

B

1 SEP.975

MTM3L/4

CREDIT COMPETITION

69.

BEF

a

We spoke recently about your letter of 22 August in which you suggest that one way of keeping the discussions going on the possibility u. Gentleman's Agreement was to encourage the Americans (and the Japane to engage in closer consultation on terms for particular major export projects. You have in mind the Hong Kong Mass Transit System as ú Suitable "guinea-pig".

As I mentioned, we are not for our part as yet prepared to accept vu. readily that the prospect of an early wide-ranging Gentleman's Ag is fast receding. The Americans seem to be yielding a little on length of credit, and we ought to bring maximum pressure to bear v French to move on interest rates, so that an agreement can be fo even if it has to be subject to fairly regular review. Ir the r for a full-scale Gentleman's Agreement do eventually founder, that our first fall-back position ought to be a more limited a Lased on a clarification and extension of the Washington Ag.coom. would at least control credit for sales to the "richer" countri.: think is the least sensitive of our problems.

1

.. regards consultation on particular cases, I think we pilotne that the existing established machinery is any adequate fo P113080. It is true that the USA and Japan aaye never forwal Feribod to the OECD arrangements for prior con parties to the procedure for the exchange of imo bulla on that. Certainly we would woleoa guitude from the Americans and the Japanese i

out sensitive cases and giving adequate note of their itu. e we would certainly not regard this as an dŭoquate oudstil vider-ranging Gentleman's Agreement.

A more fogue. Jzonangkap din

/In

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