TNAG-0955-FCO40-1174-Legislation-for-traffic-on-roads-in-Hong-Kong-1980 — Page 76

V

27

00 BTC HONG KONG

GR 190

UNCLASSIFIED

AKK 172/1

RECEIVED IN REGISTRY NO. 51

09 OCT 1980

DESK OFFICER

COMMERCIAL IN CONFIDENOEDEX

PA

FM E C G D 02134OZ OCT 80 No/msa,

TO IMMEDIATE BTC HONG KONG

ALGISTRY

Action Taken

Awali

HK iG Dept

Might like to thünk aben! M' Gowlland's sugges

From below.

ค

6.10

ECGD HIGD

KOWLOON MOTOR BUS COMPANY.

26

YOUR EXCED 29 OF 30 SEPTEMBER,

TRE

2+

see

34

TELEGRAM NUMBER EXCED 24 OF 2 OCTOBER.

1. WE HAVE TAKEN NOTE OF THE POINTS MADE BY DEREK JONES BUT DESPITE

THE MOST SYMPATHETIC CONSIDERATION WE DO NOT CONSIDER THAT WE HAVE

BEEN GIVEN ANY PRECISE FACTS THAT WOULD ENABLE US TO TAKE ON AN ADDITIONAL POUNDS 18 AND A HALF MILLION AS AN UNSECURED LIABILITY ON

KMB.

2. INCLUDING THE 50 BUSES NOW AGREED OUR TOTAL COMMITMENT ON KMB IS POUNDS 21 MILLION AND WE ARE LED TO BELIEVE THAT WITH THEIR

PROJECTED CAPITAL EXPANSION THEY COULD HAVE OUTSTANDING IN

RELATION TO BUS PURCHASES ALONG A DEBT OF SOME POUNDS 80 MILLION BY 1981/82. WE CAN SEE NO WAY IN WHICH SUCH A FIGURE COULD BE MADE AN ACCEPTABLE UNSECURED CREDIT RISK AND NO ALTERNATIVE BUT TO REQUIRE ANY FURTHER CREDITS TO THE COMPANY TO BE UNCONDITIONALLY

GUARANTEED BY THIRD PARTIES.

3. WE HAVE TAKEN FULL REGARD OF THE POINTS MADE, NOT ONLY BY DEREK JONES BUT ALSO BY THE FCO, BUT CANNOT ACCEPT THESE AS GROUNDS FOR OUR GOING BEYOND WHAT WE REGARD AS A VERY GENEROUS CREDIT LIMIT

FOR A LIMITED LIABILITY COMPANY EMBARKING ON A VERY AMBITIOUS

EXPANSION PROGRAMME. BIRCH PD3.

Un Buigee. 1

-Watson

NNNN

Charlie Brich is

A keen traveler. (He used to like coming out to Dubai), ecgp sud

HK th Themedvee!

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840.

до

o And see

-x 3

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