TNAG-0564-FCO40-659-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 60

GAS 148

RESTRICTED

CYPHER/CAT A

FM WASHINGTON 251981Z

RESTRICTED

RECEIVED IN TOP COPY

REGISTRY No. 50

26 AUG1975

HKK 21/4.

TO ROUTINE HONG KONG TELNO 37 OF 25 AUGUST.

EXIMBANK CREDIT FOR MASS TRANSIT AUTHORITY.

EXIMBANK HAVE TOLD US THAT WHILE THEIR ANSWER TO THE CHAIRMAN OF THE MASS TRANSIT AUTHORITY ABOUT A CREDIT COMMITMENT IS BEING HELD UP BY TECHNICALITIES THEY ARE CONFIDENT OF BEING ABLE TO MAKE AN OFFER SHORTLY. SUGGEST YOU INFORM CHAIRMAN.

2. THEY PLAN TO OFFER A COMMITMENT BASED ON US DOLLARS 330 MILLION AS FOLLOWS:

(A) 45 PERCENT DIRECT EXIMBANK CREDIT AT & PERCENT

(B) 22 AND A HALF PERCENT EXIMBANK GUARANTEE OF PRIVATE SCURCE

LOANS

(C) 22 AND A HALF PERCENT PRIVATE LOANS NOT GUARANTEED BY EXIMBANK (D) 10 PERCENT CASH (1.E. NO EXIMBANK INVOLVMENT IN FINANCING) REPAYMENT OF (C), (B) AND (A) IN THAT ORDER BY 20 EQUAL SEMI- ANNUAL INSTALMENTS BEGINNING JULY 1980.

3. THEY EXPECT THE HONG KONG GOVERNMENT RATHER THAN MASS TRANSIT AUTHORITY TO GUARANTEE EVENTUAL REPAYMENT.

MORETON

REPETITIONS DISTRIBUTION

HKIOD

NAD

FRD

RESTRICTED

27

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