2.
(e) Repayment
3
being paid on
currency advance, we
then
suggest
our
hard
would
as
an
that
alternative to interest
have
we 'buy forward' in water.
Repayment of the advance
would be in volumes of water
which could
been
purchased by each instalment
of the advance at the time it
was paid (effectively an
interest rate equivalent to
the rate at which water
prices increase). We would expect the Chinese to reject this, thus leading us back to a negotiation on the general
abolition of interest.
We should suggest that the advance should be repaid over four years starting in
1995.
Water Price
We would propose two options, either
two options, either of which would provide some safeguard against uncontrolled price increases
for Chinese water
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