TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 130

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

CONFIDENTIAL

AFTER MUCH THOUGHT I CONSIDER THAT THESE PRINCIPLES CAN BE BE MET IF WE PROCEED TOWARDS THE NEGOTIATION OF THE FINANCIAL AGREEMENT IN THE FOLLOWING WAY, WHICH I WOULD EMPHASISE HAS BEEN FULLY AGREED BETWEEN MY DEPARTMENT, E C G D AND G E C:

! THE DEPARTMENT OF INDUSTRY, IN CONJUNCTION WITH E C G D AND

LAZARDS, WILL HAVE CONTROL OF THE PRODUCTION OF THE LOAN DOCUMENT:

11 SCHRODERS IN THEIR CAPACITY AS ADVISERS TO CLP/EE WILL BE

FULLY INVOLVED IN THE LOAN NEGOTIATIONS. THEIR APPROVAL WILL

OBVIOUSLY BE OBTAINED TO ITS PROVISIONS:

1 FULL ACCOUNT WILL BE TAKEN OF THE WISHES OF CLP/EE AS TO THE MEMBERS OF THE BANKING SYNDICATE SUBJECT TO THE BANKS, AND THE TERMS OFFERED, BEING ACCEPTABLE IN ACCORDANCE WITH E C G D'S NORMAL CRITERIA, THOUGH, WE WOULD EXPECT, AS IS USUAL IN THESE CIRCUMSTANCES, THAT G E C'S VIEWS WOULD ALSO BE TAKEN INTO ACCOUNT. THE INVITATION TO JOIN THE SYNDICATE SHOULD APPROP-

RIATELY BE MADE JOINTLY BY SCHRODERS AND LAZARDS:

IV ONCE THE LOAN DOCUMENT AND THE ASSOCIATED AGREEMENTS BETWEEN

THE BANKS AND E C G D HAVE BEEN AGREED BETWEEN ALL PARTIES GEC WILL, TO MEET YOUR REQUEST, WITHFRAW THE NOMINATION OF LAZARDS AS THE FINANCING BANK AND SCHRODERS, WOULD FORMALLY TAKE THE POSITION OF MANAGER AND AGENT BANK. AT THAT TIME SCHRODERS WILL BE ASKED TO SIGN A DECLARATION TO THE EFFECT THAT THEIR LOYALTIES WILL BE TO E C G D AND THE LENDING SYNDICATE AND NOT REPEAT NOT TO THE BUYER: I UNDERSTAND THAT THIS IS NOT REPEAT NOT LIKELY TO

PRESENT THEM WITH ANY DIFFICULTY.

V IN THE PUBLICITY FOLLOWING LOAN SIGNATURE SCHRODERS WOULD BE

SHOWN AS MANAGERS OF THE LOAN AND AGENT BANK AND LAZARDS ́AS ADVISERS TO THE DEPARTMENT OF INDUSTRY AND AS ARRANGERS OF THE

FINANCE.

TO SUM UP, MY DEPARTMENT WOULD CONTINUE TO PROCESS THE CONTRACT ON THE BASIS OF THE UNIQUE APPROACH WE HAVE FOLLOWED HITHERTO : WHEN EVERY DETAIL HAS BEEN AGREED BY YOUR OWN REPRESENTATIVES

2

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CONFIDENTIAL

SCHRODERS WILL

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