C.S. 166
CONFIDENTIAL ##
機密
9
XCC(75)55
Guarantees
23
As previously anticipated, all open market finance offers will be subject to the provision of a Government guarantee. This has been confirmed in discussion with bankers, both overseas and in Hong Kong, and by the Provisional Authority's financial advisers; · and it is so whether the manner of financing is by bond issue, private placement, or overdraft facilities.
24
It is almost certain that export credit finance will re- `quire similar Government guarantees. Certainly, this has been in-
dicated by the authorities concerned in each of the 13 countries visited,
25
During the course of final negotiations for export credits, before placing contracts, it may be possible to substitute some other form of security for a Government guarantee. But this is unlikely and the realistic assumption at this stage is that both open market and export credit finance will require Government guarantees.
26
It will be seen from column (11) of Table 3 of Annex D that the maximum outstanding borrowings reach $5, 590 million in 1981. Although the Provisional Authority considers that this debt will be well secured by the commercial viability of the project, it will represent, nevertheless, a contingent liability on the free assets of the Colony.
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27
(c)
Revenue
As the Modified Initial System was conceived and developed over a relatively short period of time, the available traffic forecasts were not specifically related to this new System. However, fore- casts were made, based on earlier studies for the Initial System and a fare structure was then developed,
28
In order to check the revenue estimates for the Modified Initial System so derived, a more detailed study was carried out by the Provisional Authority shortly after the January decision. This also was produced quickly and without the benefit of any new network analyses, but it did take into account up to date thinking about future population and employment and recent (1973) traffic survey information. The Provisional Authority concluded that this study confirmed the estimates used in memorandum XCS(75)1,
CONFIDENTIAL
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