Transcription
Lloyds Bank Plc Branch Rotterdam
Note to: B.P. Constant, Director Corporate Banking.
From: A.D. Dirkzwager, Lloyds Bank Plc, Rotterdam
Date : 18th August 1992
ADD/AvdK/weg2.doc
18.8.1992
Re : N.V. GTI HOLDING YOUR NOTE OF JULY 1, 1992
Due to being on summer holidays in the month of July and upon my return
Andrew Bonar being in Tehran during the first week of August my reaction to
your note is belated.
First of all, in order to comply with the terms of your authorization to
continue the relationship I confirm that : 1) a new facility letter will be
drafted by our lawyers, 2) in the past 10 years the parent company has
always been liable for every single guarantee we have established and the
liability of the parent as such has been recorded, which is also
acknowledged by NV GTI and it will not be different in the future, 3) in
future, we shall only support those projects which have been checked by us
to not exceed 12 months. Since most guarantees, according to prevailing
market practices, have no expiry date, we shall insist on the submission of
underlying copies of agreements relating to the projects.
Having noted the Bank's terms of authorisation, I reconfirm that NV GTI is
not only a well-managed, quoted company in the Netherlands, but the
attractive aspect, of being their bankers, is that they require only
'non-funds based' services from the Bank which relate to performance risks
for a rather routine type of electronic and technical installation jobs.
Furthermore, the nature of their business is such that NV GTI can fairly
securely predict its net profit figure 12 months in advance, basing
themselves on orders on hand.
We are of the opinion that A/L 92/20 of 12.5.1992 reflects the true
position of GTI as outlined above. I cannot help but think, that the
apparent severe counseling tone of your note of 1st July 1992 serves
another purpose than that of protecting the Bank's interest from possible
losses to be incurred by rendering services to GTI.
I will be happy to discuss the other points you raised in your note in an
open and constructive discussion. I will not accept the onus to prove the
denial of unsubstantiated observations. I honestly believe that it should
not have been necessary to go into writing on this matter, had you instead
communicated your concern to the undersigned verbally. I could have given
you the necessary reassurances.
Be assured that I continue to give my best efforts to Lloyds Bank, whilst
I express my concern on how Lloyds Bank perceives the market as expressed
in the following quotation: "Good managers are cautious but not too cautious."
If they show an excessive fear of mistakes, their employees' initiative may be stifled.
People get super cautious if every little slip up tends to unnerve their managers".
Finally, I enclose for your information a copy of my memorandum of 6th April 1992
to the PM NL commenting to the underperformance of the Netherlands in general
and Rotterdam in particular.
A..D. Dirkzwager
Manager
