TNAG-0955-FCO40-1174-Legislation-for-traffic-on-roads-in-Hong-Kong-1980 — Page 95

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c) The question of specific security for Castle Peak 'B'.

A brief summary of each argument in Hong Kong Telegram No 1032 to the Hong Kong Government Office. A suggestion of further discussion with the Hong Kong Government on more practical schemes (DOI are suggesting some kind of joint shareholder and development fund arrangement).

d)

The commercial risks if we make the demands for credit security too tight. Flexible security is one of our main commercial selling points. The Power Station contract is not yet sewn up. Japanese terms could be attractive

and we could lose the order.

5. On buses, Mr March has spoken to ECGD and stressed the Hong Kong Government's concern. I have spoken to Mr Ford, who is content to wait until after the DOI meeting. We will then need a reply to Hong Kong which should express understanding of their difficulties but emphasise that the maintenance of confidence is a two-way matter.

ECGD's concerns are real. We need a practical solution.

R D Clift

23 September 1980

Hong Kong and General Department

CC

Mr Burges Watson TRED

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