4.
aef2.jbnov/min/7.2
The Treasury has resisted taking on commitments in Amber Zone markets greater than £200 million per year as part of a policy of broadly speaking limiting new commitments in these markets to expected repayments. In Hong Kong's
Kong's case, such a £200 million limit will be in line with expected repayments and at least stop the over-concentration problem getting any worse. The Treasury recognises that this could mean that some projects that come forward do not receive cover and as a result may not go ahead. But, providing cover in response to demand which
E is close to what FCO and DTI are proposing for Hong Kong - is the policy which lost the taxpayer large amounts of money. The Treasury believes that new commitments of cover to Hong Kong should be limited to repayments, given scope for new business of around £200 million per year." ing
I suggest that you add the following sentence to the end of the first paragraph on page 5:
5. the
last of all or last substantive
paragraph?
"The Treasury, as chairman of EGC, is setting up an early meeting to discuss this project.
10
I also suggest the following paragraph to be inserted before last paragraph:
6. (ECGD).
"The Treasury believe that the potential costs to the taxpayer of large scale guarantees to Hong Kong need to be given greater weight. The various issues will be examined more thoroughly in the EGC assessment of the Lantau Fixed Crossing project so that Ministers can decide the right balance between the various
considerations."
I am copying this letter to Messrs Rogers (DTI) and Pentecost
Your sincerely
Joseph M. Halligan.
J M HALLIGAN
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