TNAG-2389-FCO40-3471-Extradition-from-the-UK-to-Hong-Kong-case-of-Lorrain-Esme-Os-1991 — Page 204

RESTRICTED

FM KUALA LUMPUR

TO IMMEDIATE ODA

TELNO MODEV 27

OF 090715Z MAY 91

RESTRICTED

злота

245

IPULALI MA

240545

11.

006042

MDADAN 9752

ADVANCE COPY

M. Yaghmowian

INFO IMMEDIATE DTI (PEP), FCO (SEAD)

PERGAU OFFER

1. AS YOU WILL KNOW FROM OUR TELNO MODEV 21 AND MATTEY'S FAX TO WORBOYS OF 7 APRIL. THE ONLY SERIOUS PROBLEM IN FINALISING THE LOAN AGREEMENT IS THE CONDITION THAT THE LOAN SHOULD BE MADE TO THE

MALAYSIAN GOVERNMENT WHO SHOULD LEND ON TO TNB AT COMMERCIAL RATES (PARA 2.03 OF THE LOAN AGREEMENT). WE HAD ALREADY BEEN INFORMED OF

THIS BY EPU AND TNB. THE SUBJECT WAS RAISED ON THE 6 MAY AT MEETING BETWEEN LORD CAITHNESS AND THE DEPUTY MINISTER OF ENERGY DATO' MOHD

TAJOL RASLI GHAZALI, WHO AGAIN CONFIRMED THAT THE MALAYSIAN

GOVERNEMNT WOULD PREFER THE LOAN TO BE MADE DIRECTLY TO TNB AT THE

CONCESSIONARY RATE WITH THE LOAN GUARANTEED BY THE MALAYSIAN GOVERNMENT. TNB IS AS YOU KNOW WHOLLY OWNED BY THE GOVERNMENT. WE ARE

PROMISED A WRITTEN REPLY TO OUR REQUESTS FOR COMMENTS BUT THE

MINISTER'S STATEMENT WAS CLEARLY INTENDED AS OFFICIAL NOTIFICATION OF

THE MAIN OUTSTANDING PROBLEM. FROM ANOTHER SOURCE WE UNDERSTAND THAT

THE PRIME MINISTER HAS INSRUCTED THAT REMAINING POINTS BE SETTLED

BEFORE HIS RETURN FROM THE UNITED KINGDOM IN MID MAY. WE THREFORE EXPECT, AT ANY TIME, A REQUEST FOR AN URGENT RESPONSE TO THE PROPOSAL MADE TO LORD CAITHNESS GRATEFUL THEREFORE FOR A REPLY WHICH CAN BE

PASSED ON TO THE MALAYSIANS BEFORE 15 MAY.

·

2. FINALLY, TO HELP US DEFEND HMG'S POSITION AND TO SATISFY OUR OWN CURIOSITY, WE WOULD APPRECIATE AN EXPLANATION OF THE LOGIC BEHIND THE INCLUSION OF THE ORIGINAL CONDITION THAT THE LOAN BE MADE TO THE MALAYSIAN GOVERNMENT AND BE PASSED ON TO TNB AT COMMERCIAL RATES. TO

THE NON-EXPERT THIS WOULD APPEAR TO LEAVE THE MALAYSIAN GOVERNMENT

WITH A HANDSOME PROFIT TO DO WITH AS IT PLEASES WITHOUT ANY CALL FOR

JUSTIFICATION ON DEVELOPMET AND OTHER GROUNDS. THIS IS SURELY NOT THE

OBJECT OF THE CLAUSE. GRATEFUL FOR ANY COMMENTS YOU MAY HAVE.

SPRECKLEY

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