TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 51

HOFO 043/23

PP DO I

RR E C G D

GR 450

CYPHER CAT A

FM BTC HONG KONG 231031Z

CONFIDENTIAL

HKK.164/1

-2 MAR 1978

DESK OFFICER INDEX

No

REGISTRY Action Taken

NO DISTRIBUTION

TRED (21/HKG) / PusD (23/K129

Какой б

DOT/INGS JPC

ECGD

TO PRIORITY DO I TELNO INDUS 27 OF 23 FEBRUARY 1978 INFO E C G D (FOR BIRCH)

FOR LIPPITT.

FOLLOWING IS TEXT OF MESSAGE RECEIVED THIS AFTERNOON FROM

CHAIRMAN CLP/PEPCO

BEGINS

YOU MAY HAVE BEEN TOLD THAT DEAN BARRETT TOGETHER WITH REPRESENT- -ATIVES OF ESSO AND SCHRODERS AND CHARTERED WILL BE TRAVELLING

TO LONDON FOR MEETINGS NEXT WEEK ON LOAN DOCUMENTATION. DEAN BARRETT WILL CONTACT ALISTAIR MACDONALD SHOULD HE REQUIRE SUPPORT AND ASSISTANCE.

2. IN CONNECTION WITH THIS LOAN DOCUMENTATION THERE HAS ARISEN

BETWEEN ECGD AND SCHRODERS LONDON ON THE ONE HAND AND CLP, ESSO AND SCHRODERS AND CHARTERED ON THE OTHER A DIAMETRICALLY OPPOSED INTERPRETATION OF WHAT WAS AGREED DURING THE MEETINGS IN HONG KONG IN DECEMBER ON THE QUESTION OF DEFERMENTS.

3. SIMPLY PUT ECGD AND SCHRODERS CONTEND THAT DEFERMENTS CAN

AMOUNT TO 3/17TH OF THE LOAN BUT THAT NO PART OF ANY DEFERMENT CAN BE OUTSTANDING FOR A PERIOD OF MORE THAN 18 MONTHS.

4. THE CLP, ESSO AND SCHRODERS AND CHARTERED VIEW IS THAT WHAT

WAS AGREED IN HONG KONG WAS THAT THE TOTAL DEFERMENT BY KESCO AT

ANY TIME MUST NOT EXCEED 3/17TH OF THE LOAN WITH SPECIAL PROVISIONS FOR THE LAST THREE INSTALMENTS.