TNAG-0639-FCO40-787-Construction-of-underground-railway-system-in-Hong-Kong-(Mas-1978 — Page 20

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

C.C.

CONFIDENTIAL

British Trade Commission in Hong Kong

9th Floor Gammon House 12 Harcourt Road Hong Kong Mail Address PO Box No 528 Hong Kong

Telex HX 73031 Cable Address Uktrade Hong Kong Telephone 5-230176

hioplay tren P.AV

"Jeels

-18)

J.A.B. Stewart, Esq.,

Hong Kong & General Department,

F.C.O.

Original at: HKK 16+

HKK 173/1

This Copy for: HKK 173 Information only / Action on

Your reference

Our reference ECO 173/1

Date 11 August, 1977

RECEIVED IN

REGI➡ BY P., 51

Ian

3

оси Гови

Para(s)

HONG KONG AND E.C.G.D.

16 AUG 1977

LASI

Thank you for your letter of 4 August about ECGD's attitudes towards credits for the Mass Transit Railway.

2.

I am most grateful for the background which you have provided and I have now been able to have a detailed discussion of the issues with Charles Birch who has been in Hong Kong for discussions about the financial arrangements for the power station project.

3.

I have never sought to argue that we could not ask the Hong Kong Government to gurantee loans to the MTR for the second phase of the project (as you point out they guaranteed the first phase). My concern was that in presenting the reasons for this requirement, ECGD should not say anything which could be misinterpreted in this highly volatile and rumour filled market as indicating official doubts about the future of the Colony. In other words, it is the explanation of our policy rather than the policy itself which will be important.

4.

Charles Birch's visit has been invaluable as it has enabled him to see for himself the background against which we shall be corresponding on major projects in Hong Kong. He kindly agreed to say on for an extra day in order to meet Norman Thompson and his Financial Adviser and to have a short tour of the current project. Inote that the MTR found his advise of great value and I am most grateful to ECGD for arranging the visit.

Versever. Such.

D. M. March

C.W. Roberts, Esq.,

CRE 4, DOT.

Mr. Rumble, TRED, FCO.

CONFIDENTIAL

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