TNAG-0636-FCO40-784-Supplies-of-electricity-for-Hong-Kong-1977 — Page 133

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THE U.K. WOULD OFFER PARTICULARLY FAVOURABLE BUYER CREDIT

TERMS FOR AN AMOUNT EQUAL TO 100% OF THE VALUE OF U.K.

GOODS AND SERVICES WHICH ARE TO BE SUPPLIED UNDER THE

CONTRACT.

IF YOU SO WISHED WE WOULD EXAMINE POSSIBILITIES OF

DENOMINATING THE BUYER CREDIT LOAN IN HONG KONG DOLLARS

SO AS TO REMOVE ANY FOREIGN EXCHANGE RISK FROM XYZ LIMITED.

ABC LIMITED WOULD BE PREPARED TO ACCEPT SHARES IN

XYZ LIMITED FOR THAT PART OF THE TOTAL CONTRACT - PRICE

WHICH IS NOT COVERED BY A BUYER CREDIT. THIS ARRANGEMENT

WILL CLEARLY BE DEPENDENT UPON THE IMPACT OF THE SCHEME

OF CONTROL ON XYZ LIMITED, THE FEASIBILITY STUDY FOR THE

NEW POWER STATION AND CONSEQUENTLY XYZ LIMITED'S

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ANTICIPATED CASH FLOW. IT WOULD BE NECESSARY TO

DEMONSTRATE THAT THE BUYER CREDIT COULD BE REPAID FROM

THE REVENUE OF XYZ LIMITED AND THAT THE SHARES ACCEPTED

BY ABC LIMITED IN LIEU OF DIRECT PAYMENTS REPRESENT

AN ATTRACTIVE INVESTMENT.

THE RESOURCES OF ALL APPROPRIATE GOVERNMENTAL AND

STATUTORY BODIES IN. THE U.K. WOULD BE MADE AVAILABLE

TO ENSURE THE SUCCESSFUL IMPLEMENTATION OF THE NEW

POWER STATION AND THE WIDER PROJECTS THAT YOU HAVE

MENTIONED. IN PARTICULAR THE NATIONAL ENTERPRISE

BOARD, THE OVERSEAS PROJECTS GROUP OF THE DEPARTMENT

OF TRADE, AND THE CEGB WOULD HAVE A SPECIFIC

CONTRIBUTION TO MAKE.

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