TNAG-1060-FCO40-1310-Mass-Transit-Railway-in-Hong-Kong-1981 — Page 73

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M 14 SEP WOP

DESK OFFICER

INDEX

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NO

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FM BTC HONG KONG 110945 Z

TO PRIORITY E C G D

REGIATAY

GRAM WAS NOT..

ADVANCED

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Mr Edgar

kıza pl. dias

Mr Williman Jan ECG

TELEGRAM NUMBER EXCED 27 OF 11 SEPTEMBER

INFO DO T (FOR PEP DIVISION)

14.9

139

Mr. Scarle

Mr. Edgar

-TRED

Кие

x 2

YOUR EXCED 30. MASS TRANSIT RAILWAY.

YOUR PARA 2. THANK YOU FOR YOUR RECOGNITION OF THE PROBLEM OF THE 10% GAP, REPRESENTING THIRD PARTY (NOT LOCAL) COSTS.

2. YOUR PARA 3. NORMAN THOMPSON HAS TOLD ME, IN STRICT CONFIDENCE,

THAT A SENIOR OFFICIAL OF THE EXPORT IMPORT BANK IN TOKYO TOLD HIM THAT JAPANESE CONTRACTORS WOULD BE ABLE TO PROVIDE CREDIT OFFERS FOR UP TO 50% OF TOTAL CONTRACT VALUE. WHILE JAPANESE CONTRACTORS MAY NOT HAVE APPLIED FORMALLY TO THE OFFICIAL CREDIT INSURANCE AGENCY FOR SUCH EXPORT FINANCE IT SEEMS CLEAR THAT THEY HAVE RECEIVED PRIVATE ASSURANCES THAT SUCH TERMS WOULD BE AVAILABLE. THOMPSON ASSURES ME, ALSO PRIVATELY, THAT EVERY JAPANESE BIDDER HAS NOW ACCEPTED MTR'S REQUIREMENT FOR FIXED RATE HONG KONG DOLLAR FINANCE COVERING 50% OF CONTRACT VALUE. HE ALSO SUGGESTED THAT MOST JAPANESE COMPANIES COVER THEIR EXCHANGE RISK BY FORWARD DEALS IN THE SWISS FRANC/YEN MARKET.

3. YOUR PARA 4, THANK YOU FOR THIS BACKGROUND.

4. YOUR PARA 5. NOTED. I HAVE SO INFORMED NORMAN THOMPSON ALTHOUGH I SUSPECT IT WILL BE DIFFICULT TO DISTINGUISH BETWEEN THE WORK OF THE UK PRINCIPAL AND ITS HONG KONG SUBSIDIARY.

5. SOME GOOD NEWS. MARPLES RIDGEWAY WERE AWARDED CONTRACT 403A ADVANCE WORKS ON ADMIRALTY STATION) ON SEPTEMBER 7. CONTRACT VALUE IS ABOUT HK DOLLARS 35 MILLION,

MARCH

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