TNAG-1515-FCO40-2076-Bridges-and-tunnels-in-Hong-Kong-1986 — Page 331

rates quoted for existing business in replacement of higher rates quoted earlier. However it remains to be demonstrated that there is justification for reducing rates indicated earlier simply

rates because Consensus rate has fallen. As you will know, Harry Bush wrote to Bob Wild on this issue on 17 January. There should be no reduction / because Consensus Rates have been reduced

reduced and new, lower rates should apply automatically for all business on stocks. Each case should be decided on its merits. Subject to this, and to the overriding requirement of the Consensus rules, I can agree that if necessary in the face of competition etc lower rates than you had

had indicated earlier may be quoted for the three items of business in Hong Kong mentioned in your letter. You may, in the light of what I have said above, want to consider carefully the justification for reducing the interest rate quoted on

rate quoted on the Lilley business. I note that the prime contractor offered 10.5 per cent for Hong Kong Dollar finance even before the recent reduction in Consensus Interest Rates and that it is not self-evident that it is necessary to agree a rate below that for Lilley in this case. Before doing So, even though the Consensus Rate now is 10.15 per cent you, will need to be satisfied that it is necessary to charge that rate and indeed that other credit insurers are also applying that rate.

any of the

I assume that formal contracts have not been signed on three cases mentioned in your letter nor such other formal steps been taken such as would have fixed the previous Consensus Rate for any of these items.

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