TNAG-0955-FCO40-1174-Legislation-for-traffic-on-roads-in-Hong-Kong-1980 — Page 124

(1) EMBARRASS THE GOVERNMENT BY ASKING FOR A GUARANTEE TO BE ISSUED (WHICH YOU RIGHTLY ASSUMED WAS UNLIKELY) OR (11) PRESS THE GOVERNMENT TO RELEASE THEM FROM THE COMMONWEALTH MANUFACTURE' CALAUSE IN THE PUBLIC OMNIBUS ORDINANCE

BY WHICH SOURCING OF BUSES HAS TRADITIONALLY BEEN BRITISH.

6. ON THE COMPROMISE SUCGESTED BY LEYLAND (YOUR PARAGRAPH 3), KMB CLAIMED TO BE PUTTING TOGETHER THE REQUIRED FINANCIAL INFORMATION BUT SAID THEY MAY HAVE TO CLEAR IT WITH BOARD OF DIRECTORS MEETING ON 25 SEPTEMBER. SINCE (1) BUSES WERE NEEDED URGENTLY TO KEEP EXPANSION PROGRAMME ON COURSE, (11) HESTAIR DENNIS WERE DUE TO BEGIN DELIVERIES IN OCTOBER AND (111) TIME WAS NEEDED TO RESTRUCTURE CAPITALISATION AND REVALUE ASSETS, THE LOUEYS ASKED IF YOU WOULD BE PREPARED TO ACCEPT LOAN AGREEMENT FOR 202 BUSES WITHOUT ADDITIONAL SECURITY. THEY WILL THEN TRY TO WORK OUT SOMETHING WITH THE BANK TO PROVIDE SECURITY FOR THE ADDITIONAL 296 UNDER A SEPARATE LOAN AGREEMENT.

THOMSON

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