919307 PRORME G
8336C1 ECGCHQ C
FM ECGD LON
00 HONGKONG C. T.C.
GPS 214
02225
EN CLAIR
A
CC:30h Harrison, Dol
DOSPATCHER
25 SEP 1990
AKK 172
acpo-COMMS
RECEIVED IN REGISTRY NO. 91
14 OCT 1980
DESK OFFICER
INDEX
PA
REGISTRY Action Taken
Aw14/16
FROM ECGD HQ LONDON 25082cz
UNCLASSIFIED
TO IMMEDIATE JKREP HONG KONG 5.T.C. EXCED 02225
KOWLOON MOTOR BUS COMPANY
(NIR)
YOUR EXCED 24, 25 AND 26.
1. FINANCIAL FORECASTS RECEIVED PM <4 SEPTEMBER. REGRET THESE DO NOT PROVIDE BASIS FOR RELAXING REQUIREMENT FOR ADDITIONAL SECURITY. GRATEFUL IF YOU WOULD ASCERTAIN HONG KONG GOVERNMENT'S REACTION TO FUND DEFICITS ARISING FROM INVESTMENT PROGRAMME BY FARE INCREASES OF 60 PERCENT ON 1.1.81, 140 PERCENT ON 1.1.62 AND 221 PERCENT ON 1.1.83 AS ENVISAGED IN KMS FORECASTS.
2. DEPITE UNDERWRITTING DIFFICULTIES WE ARE PREPARED AS GESTURE OF GOOD WILL TU HMB TO ASSIST THEM MEET THEIR NEED TO KEEP BUS DELIVERIES FLOWING WHILST THEY ARRANGE ADDITIONAL SECURITY SY AGREEING A FURTHER BUYER CREDIT LOAN FOR 5C (FIFTY) BUSES. THIS WOULD BE ON SAME BASIS AS 1CC BUS LCAN SIGNED IN AUGUST WITH COMFORT LETTER FROM HONG KNOG GOVERNMENT. IT WILL BE FOR KMB TO DECIDE ALLOCATION OF ORDERS AMONGST SUPPLIERS BUT WE UNDERSTAND THAT HESTAIR DENNIS WHO ARE MAKING STRUNG REPRESENTATIONS FOR SUPPORT HAVE ALREADY MANUFACTURED 20 (TWENTY) UNITS FOR SHIPMENT IN OCTUSER AND WE FORESEE DIFFICULTY IN FINALISING PROPOSED LOAN IF THESE UNITS WERE NOT INCLUDED. GRATEFUL IF YOU WOULD PUT THIS PROPOSAL URGENTLY TO KM3 AND ASCERTAIN HOW ORDERS WILL BE PLACED. WE WOULD EXPECT TO COMPLETE LOAN DUCUMENTATION VERY SWIFTLY WHEN THIS INFORMATION IS TO HAND. WE HAVE INFURMED SUPPLIERS AND ANTONY 1335.
REGARDS
CHARLES 31RCH
EXPORTCRED
NNNN
SENT 25 9 80 SR
CCN IT SHOULD REAR READ AS 00 HONG KONG B.T.C. NOT AS STATED C.T.C
883601 ECGONG G
9193C7 PRORME G
22A
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