CONFIDENTIAL/COMMERCIAL IN CONFIDENCE
46726 - 2
39
PP HONG KONG
GRS283
CONFIDENTIAL
COMMERCIAL IN CONFIDENCE
FM FCO 071530Z OCT 80
TO PRIORITY HONG KONG
TELEGRAM NUMBER 884 OF 7 OCTOBER
INFO PRIORITY BTC HONG KONG (FOR MORRISON)
PERSONAL FOR JEAFFRESON FROM CLIFT
ECGD GUARANTEE FOR KMB BUSES
AKCK 17211
RAJLIVED IN REGISTRY NO. 51 0 9 OCT 1980
INDEX
Noi
MS
PA
see (4
1. AT ECGD MEETING TODAY WE, DOI AND DOT STRESSED IMPORTANCE OF
HONG KONG MARKET TO UK BUS MANUFACTURERS AND RISK OF LOSS OF THE
COMMONWEALTH PREFERENCE CLAUSE. WE EMPHASISED THE VALIDITY OF
THE ASSURANCE GIVEN BY THE HONG KONG GOVERNMENT.
2.
COTTERILL OF ECGD AGREED TO PROPOSE TO THE TREASURY THAT
THE CONTRACT BE INCLUDED IN SECTION 2 AND TREATED AS A SPECIAL
CASE, WITHOUT BANK GUARANTEES. THIS APPLIES ONLY TO THIS YEAR'S
ORDER FOR 406 BUSES.
3. ECGD WOULD BE GRATEFUL FOR FURTHER INFORMATION ON HOW THE
SCHEME OF CONTROL WOULD OPERATE IN PRACTICE. (THEY NEED TO BE ABLE TO ASSURE THE TREASURY THAT THEY ARE DOING THIS, THEY ALSO
ANTICIPATE FURTHER ORDERS IN 1981/82 AND 1982/83 AND ARE HOPING
TO AVOID PROBLEMS. THEIR PRELIMINARY VIEW IS THAT
THIS CAN BEST BE DISCUSSED BY ECGD OFFICIALS VISITING HONG KONG
LATER THIS AUTUMN.
4.
THIS IS FOR YOUR ADVANCE CONFIDENTIAL INFORMATION. ECGD WILL
TELEGRAPH FORMALLY TO BTC AFTER CONSULTING TREASURY. I SUGGEST
THAT IT WOULD THEN BE VERY HELPFUL IF YOU COULD GIVE ECGD AS MUCH
INFORMATION AS POSSIBLE ON THE LINES REQUESTED, INCLUDING:
A) YOUR VIEW OF THE PATTERN OF FARE LEVELS IN THE NEXT
FEW YEARS, TAKING ACCOUNT OF THE COMMERCIAL POSITION OF
KMB AND THE INTERESTS OF CONSUMERS:
B) LIKELY DEMAND FOR BUS SERVICES (TAKING ACCOUNT OF MTR
ETC).
5. ECGD ALSO HOPE TO OBTAIN MORE INFORMATION ON REVALUATION OF
KMB'S ASSETS AND THE EXTENT TO WHICH THIS CAN BE SET AGAINST THE CONTRACT (PARA 2 OF BTC'S EXCED 29).
REGISTRY
Action Takan
Awali
CARRINGTON
DISTRIBUTION:
COPIES TO:-
HONG KONG GOVERNMENT OFFICE LONDON
(FOR COMMISSIONER)
LIMITED
HKGD
TRED
MR DONALD
COMINATIAL
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