CONFIDENTIAL
104433
MDHIAN 2765
THINKING IN THIS AREA. THERE IS MUCH HERE WHICH WILL ONLY BE CLARIFIED PROGRESSIVELY, BUT IN THE SHORT TERM THE ADDENDUM IS CLEARLY OF PRIMARY IMPORTANCE.
4.
THE KEY ISSUE FOR HMG MUST BE THAT OF ECGD AND AN
EXPORT CREDIT PACKAGE. THE SUGGESTED ROUTE CLEARLY IMPLIES
THAT RISK WILL BE TRANSFERRED AT A LATE STAGE FROM THE HONG KONG GOVERNMENT TO AN INVESTMENT COMPANY. THERE IS A SEPARATE QUESTION RELATING TO THE TERMS OF ECGD CREDIT, WHERE DEWE MATTHEWS ALLUDED TO QUOTE HUGE UPFRONT PREMIUMS QUOTE AND IMPLIED THAT THE HKG WAS NOT LIKELY TO BE ENAMOURED BY WHAT WOULD BE ON OFFER. IT WAS POSSIBLE THAT THE FINANCING PACKAGE WOULD BE COMPLETELY COMMERCIAL. COMMENT: THE AJC IS SHORTLY TO OPEN MORE DETAILED DISCUSSIONS WITH ECGD, BUT WE CERTAINLY ASSUME THAT ECGD INVOLVEMENT WILL BE ESSENTIAL.
5.
WE WILL NEED TO KEEP IN CLOSE TOUCH AS THE POSITION
EVOLVES. ANY FURTHER INFORMATION/ASSESSMENT FROM YOUR END WOULD BE WELCOME.
HURD
YYYY
ΜΑΙΝ
8
NO DISTRIBUTION
HKD
DISTRIBUTION
8
GALLAHER, PEP, DTI
PENTECOST, ECGD ADAMS, PEP, DTI ROGERS, PEP, DTI
DTI VIC ST
ERD
JOINT DIRECTORATE
N N N N
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