TNAG-1920-FCO40-2724-Hong-Kong-water-supply-from-China-1989 — Page 13

(a) Interest Charges

i)

2

We shall explain that this

large advance, if invested

elsewhere,

normally

would

accrue considerable amounts

of interest to the benefit of

Hong

Kong

people.

therefore would offer

We

an

advance at a commercial rate

of interest. If as expected the Chinese Authority reject

this

would

concept

we

consider waiving of interest

provided that -

a) the

Chinese

Authority

were able to confirm that

interest will not

be

charged

by

other

b)

financing parties; and

reasonable

agreement

could be reached on water

prices,

technical

requirements and water

quality (paragraphs 2 to

6)

ii) If

the Chinese Authority

admit that interest will be

paid to the other financing parties but reject interest