CONFIDENTIAL COMMERCIAL IN CONFIDENCE
-
72
DSR 11 (Revised)
DRAFT:
FROM: R D Clift
minute/letter/telelőtter/döspätoM/HAZ
DEPARTMENT: HKGD
TEL. NO:
TYPE: Draft/Final 1+
Reference
SECURITY CLASSIFICATION
TO:
E A Whitear Esq
Top Secret
Secret
HM Treasury Parliament Street LONDON SW1
Confidential
Restricted
Unclassified
PRIVACY MARKING
..In Confidence
CAVEAT.......
4.10
Mr Williamson Mr. Mortice & Mr Stift
Treasury have
wow
agreed
this. I think we
MA Searle
9.
cam dispenar
dispense
w/ this lebon
Enclosures-flag(s).....
1.
Hele
SUBJECT:
Your Reference
Copies to:
C C Birch Esq, ECGD
J E Cammell Esq, DOI
Mrs M C Gingell, CRE4, DOT TRED
KOWLOON MOTOR BUS COMPANY LTD (KMB), HONG KONG
On the
I am writing to underline the points I made in my tele- to
phone conversation yesterday with Mr Nelson) concerning
his topic Mr Birch's letter of 7 October on ECGD credit for the Kowloon
ii pentrentar
Meter Bus Company. I wish to emphasise that we fully support
ECGD's proposal to cover the KMB order under Section 2.
2.
Hong Kong is the UK bus\industry's most lucrative single
export market. This favourable position has been protected by
Hang cong the 'Commonwealth Manufacture 'clause in the Public Omnibus
Services Ordinance, which, in effect, compels the bus com-
panies to buy British vehicles. Thus to meet the expansion
programme required by the Hong Kong Government, the KMB have
turned to British firms.
hard to
3.
In view of KMB's unwillingness to accept à guarantee from
the Hongkong and Shanghai Banking Corporation, the only means
of financing this large export order is an ECGD loan based on
Ficat the security of the Scheme of Control The Hong Kong Govern-
ment is financially unable to guarantee this loan, and,
indeed, any such suggestion would be politically embarrassing.
The Unofficial Members of the Executive and Legislative
Councils would attack any proposal for Hong Kong to guarantee
British exports in this way. Difficulties in securing credit
would, in addition, lead to demands for the abolition of the
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