TNAG-0564-FCO40-659-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 58

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TO ROUTINE FCO TELNO 2779 OF 26 AUGUST

RECEIVED IN REGISTЯY No. 51

27 AUG 1975

4/12/4

INFO:

TOKYO

(69)

*

EXIMBANK CREDIT FOR HONG KONG MASS TRANSIT SYSTEM.

EXIMBANK YESTERDAY ASKED THE COUNSELLOR (HONG KONG) AT THIS EMBASSY TO INFORM THE CHAIRMAN OF THE HONG KONG MASS TRANSIT

AUTHORITY THAT THEY WERE CONFIDENT OF BEING ABLE TO MAKE A FIRM

CREDIT COMMITMENT SOON, THEY SAID THAT THEY PLANNED TO OFFER A

COMMITMENT OF 330 MILLION DOLLARS REPAYABLE OVER 10 YEARS BEGINNING JULY 1988, 45 PER CENT OF WHICH WOULD BE DIRECT EXIMBANK CREDIT

AT 3 PERCENT, NO MENTION WAS MADE OF LIMITING 10 YEAR TERMS TO

ORDERS OF 40 MILLION DOLLARS OR MORE.

2. COUNSELLOR (HONG KONG) HAS PASSED THIS TO THE CHAIRMAN OF THE

MASS TRANSIT AUTHORITY.

3. THIS INDICATES THAT EXIMBANK ARE NOW VERY CLOSE TO OFFERING A

69 Fi

69 FIRM COMMITMENT, MISS KELLEY'S LETTER OF 22 AUG TO GILL SUGGESTED

THAT WE MIGHT APPROACH THE AMERICANS AND JAPANESE TO PROPOSE CON- SULTATION ON THE TERMS TO BE OFFERED BY MAJOR CREDIT GIVERS.

IF WE ARE TO DO THIS IN TIME TO PRE-EMPT EXIMBANK IT IS CLEAR THAT WE WILL HAVE TO MOVE FAST. WE AWAIT INSTRUCTIONS.

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