TNAG-1053-FCO40-1303-China-and-Hong-Kong-Working-Group-1981 — Page 8

4

SECURITY

For leasing contracts with China involving a contract price of £1m or more a guarantee of payment from the Bank of China is a fundamental requirement of ECGD cover.

5

COUNTER TRADE

1

While it is possible that Chinese lessees may require that lease rentals are met by a counter trade arrangement, it is fundamental to any support given by ECGD that any such counter trade arrangement is entirely separate from the leasing contract, which itself must impose an unconditional obligation on the lessee to pay rentals in cash.

6 FURTHER INFORMATION

Exporters interested in the possibility of cover for leasing contracts with China should contact Mrs P Jenkins 606-6699 Ext 662 for further details.

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