·
BETWEEN THE INTEREST WHICH COULD BE EARNED IN THIS WAY AND THE
U 7: AND THREE QUARTER PERCENT PAYABLE UNDER THE ECGD AGREEMENT IS SAID PRESENTLY TO BE OVER 3 AND A HALF PERCENT PER ANNUM, CALCULATIONS BY METCAM (RONAN) SHOW THAT THE BENEFIT OF A 3
A HALF DIFFERENTIAL ON SUMS DRAWN PERMATURELY WILL BE US DOLLS 5.75. THIS IS US DOLLARS 4 MILLION LESS THAN THE TOTAL AMOUNT OF
INTEREST WHICH WOULD ACCRUE ON THE ECGD LOAN IN NORMAL CIRCUMSTANG BY DECEMBER 1982 BUT IS A SIGNIFICANT CONTRIBUTION TOWARDS OUR TARGET, GEMMILL HAS SPOKEN INFORMALLY TO ALLUM OF MTR WHO THINKS THE CORPORATION WILL AGREE TO ACCEPT EARLY DRAWN DOWN OF THE LOAN
IN RETURN FOR CANCELLATION OF INTEREST CHARGES FOR A DEFINED PERIO THE CORPORATION WOULD HAVE TO BE HELD HARMLESS BY A REPUTABLE BANK FOR THE AMOUNTS PREMATURELY DRAWN BUT WE DO NOT THINK THIS WILL PROVE A SERIOUS PROBLEM.
5. GEMMILL POINTS OUT THAT WE WILL BE ABLE TO MOVE CLOSER TOWARDS MEETING THE MTR'S REQUIREMENT IF ECGD WOULD AGREE TO A
SIMILAR EARLY DRAWN DOWN UNDER THE SUPPLIER CREDIT ARRANGEMENTS SUGGESTED FOR KCR IN PARA 2 ABOVE WITH THE BENEFIT OF INTEREST DIFFERENTIAL BEING APPLIED BY METCAM TO THEIR MTR OFFER. THIS MIGHT
BE DIFFICULT TO SELL TO THE HONG KONG GOVERNMENT BUT WOULD BE WORTH TRYING BECAUSE THE SUPPLIER CREDIT MECHANISM GIVES SO MUCH FLEXIBILITY,
6. WE RECOGNISE THAT THESE PROPOSALS ARE SIMILAR IN ULTIMATE RESULT TO THE ORIGINAL SHADOW LOAN SUGGESTION BUT BECAUSE IT SHOULD MEET THE VIRES POINT WE HOPE THAT ECGD WILL GIVE US THE
NECESSARY SUPPORT IN VIEW OF THE IMPORTANCE OF MTR ORDER.
7. YOU SHOULD KNOW THAT GEMMILL LEAVES THIS AFTERNOON FOR INDONESIA WHERE HE CAN BE CONTACTED AT THE HILTON HOTEL.
CCN : PARA 4 LINE 6 SHOULD READ 7 AND THREE QUARTER PERCENT ETCM
PARA 4 LINE 8 AND 9 SHOULD READ 3 AND A HALF PERCENT
ETC
MARCH
NNNN
No comments yet.
Private notes are available after approval.