TNAG-2409-FCO40-3503-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1992 — Page 11

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MDHIAN

COMPLETION OF THE SITE PREPARATION CONTRACT. THE EARLIER POSITION HAD BEEN BASED ON THE VIEWS OF OTHER NATIONAL CREDIT AGENCIES IF THEY WERE PREPARED TO CHANGE, THE AMERICANS WOULD NOT OBJECT.

6.

DUNDAS OBSERVED THAT THIS WAS A CRUCIAL POINT FOR THE PAA: IT HAD NOT BEEN RAISED IN THE MARCH ROUND OF DISCUSSIONS. WERE REPAYMENTS TO START TWO YEARS BEFORE THE AIRPORT OPENING, THE AUTHORITY WOULD RAPIDLY GO INTO DEFAULT.

7.

COMMENTING ON ALLEN'S LETTER, HE SAID THE PAA HAD NO INTENTION OF SUGGESTING THAT ECGD SHOULD BREAK THE CONSENSUS ON THE LOAN REPAYMENT PERIOD. HE UNDERSTOOD, HOWEVER, THAT TERMS FOR MAJOR PROJECTS WERE UNDER DISCUSSION AMONG NATIONAL CREDIT AGENCIES. THE PAA SIMPLY WISHED TO PUT DOWN A MARKER SO THAT, WERE THE CONSENSUS RULES TO CHANGE, THE AIRPORT PROJECT COULD SUBSEQUENTLY BENEFIT FROM REVISED TERMS.

DAY

YYYY

ΜΑΙΝ

79

DISTRIBUTION

87

.HONG KONG AIRPORT GENERAL

HKD

PUSD

ECONOMIC ADVISERS

ERD

FED

JOINT DIRECTORATE

LEGAL ADVISERS//MS BROOKS

.AND MS BARRETT

NEWS D

PLANNERS

RAD

PS

PS/MR GOODLAD

PS/PUS

MR CROWE

SIR J COLES

MR MILES

MR HUM

ADDITIONAL

8

CAOFF//SIR R BRAITHWAITE

HMT//MR MACINTYRE

BANKE//MR C ELSTON

CAOFF//MISS D CORNER

NNNN

CAOFF//MR A CHARLTON

CAOFF//MR SIBSON

DTI//MR ROBBINS

ECGD//MR PENTECOST ECGD

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