TNAG-0564-FCO40-659-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 61

4.27/0830

NFO 28/25

Ho. HRIOD.

ADVANCE COPY

(RAMTITIONS DIST

G

(w/69)

RR HONG KONG

GRS 140

CYPHER/CAT A

FM WASHINGTON 2519012

RESTRICTED

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 8 PERCENT

(B) 22 AND A HALF PERCENT EXIMBANK GUARANTEE OF PRIVATE SOURCE 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 SEM I—

ANNUAL INSTALMENTS BEGINNING JULY 1980.

3. THEY EXPECT THE HONG KONG GOVERNMENT RATHER THAN MASS TRANSIT

AUTHORITY TO GUARANTEE EVENTUAL REPAYMENT.

MORETON

NN NN

TSENT AT 25/19582 JAL

26

p.a

Golares

Deut

st

Mr. Jarry (OPG /DOT) -W.

ECGD/M

Bank (M. Lo Treasury

TRED

ab