FILE PHOTO: China-made Tesla Model 3 electric vehicles are seen at the Gigafactory of electric carmaker Tesla Inc in Shanghai
By Yilei Sun, Cheng Leng and Brenda Goh
BEIJING/SHANGHAI (Reuters) - U.S. electric vehicle maker Tesla Inc <TSLA.O> and a group of China banks have agreed a new 10 billion yuan ($1.4 billion), five-year loan facility for the automaker's Shanghai car plant, three sources familiar with the matter said, part of which will be used to roll over an existing loan.
China Construction Bank <0939.HK> <601939.SS> (CCB), Agricultural Bank of China <1288.HK> <601288.SS> (AgBank), Industrial and Commercial Bank of China <601398.SS> <1398.HK> (ICBC) and Shanghai Pudong Development Bank <600000.SS> (SPDB) are among the banks which have agreed to give Tesla the financial support, one source with direct knowledge said.
The Chinese banks earlier this year already offered Tesla a 12-month facility of up to 3.5 billion yuan, which is due to be repaid on March 4, 2020, according to a filing the automaker made to the U.S. Securities and Exchange Commission.
That new loan will be partially used to roll over the previous 3.5 billion yuan debt, according to the first source. The second source said the rest will be used on the factory and Tesla's China operations.
The new loan's interest rate will be pegged at 90% of China's one-year benchmark interest rate, the same as the 3.5 billion yuan loan, the first source said. This is a rate that China banks offer to their best clients.
Tesla, CCB, AgBank, ICBC and SPDB did not immediately respond to Reuters' requests for comment.
Tesla broke ground on the factory in January and has started producing vehicles from its Shanghai plant. It aims to build at least 1,000 Model 3 cars a week by the end of this year.
The factory, which is Tesla's first car manufacturing site outside the United States, is the centerpiece of its ambitions to boost sales in the world's biggest auto market and avoid higher import tariffs imposed on U.S.-made cars.
The Shanghai government has also thrown its support behind the Tesla project, which would be China's first wholly foreign-owned car plant and a reflection of the government's broader shift to open up its car market.
A six-year-old girl who found a message from a prisoner in China inside a Tesco Christmas card has said she "thought it was a prank".
Florence Widdicombe told Sky News "it was really weird" to find the note in the charity card.
The message read: "We are foreign prisoners in Shanghai Qingpu prison China. Forced to work against our will. Please help us and notify human rights organisation."
Image:Tesco sells the Christmas cards to raise money for UK charities
Image:Qingpu Prison is near to Shanghai
Tesco said it was shocked by the find and had started an investigation, and has also stopped working with the Chinese factory where the card - decorated with a kitten wearing a Santa hat - was made.
The message inside named the former journalist Peter Humphrey as a contact, who spent two years in the same prison.
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Florence, who lives with her family in Tooting, London, said: "I was sitting down at the table writing my cards to my friends when I opened one and started laughing because someone had already written in the card.
"Then I passed it on to my mum. It took an hour to get our heads round it because we thought it was a prank."
More from China
Her father Ben Widdicombe said he was unsure of the veracity of the message, but contacted Mr Humphrey.
He told Sky News: "After some reflection we thought that if someone was genuinely desperate enough to write that card we should take it seriously. When I tracked Peter down on the internet, I came across this story and it became very serious and quite chilling in a way."
Image:Ben Widdicombe says he's glad to bring the card to the attention of people who can help
Mr Humphrey said the message from Mr Widdicombe took him back to the "painful two-year period" when he and his wife were imprisoned over "bogus charges".
Writing in the Sunday Times, Mr Humphrey said he did not know who wrote the message but had "no doubt" they knew him during his time in the prison, which is 62 miles (100km) from the Zheijiang Yunguang Printing factory where the cards are supposed to be made.
He said ex-prisoners had confirmed that inmates in the foreign prisoner unit "are being forced into mundane manual assembly or packaging tasks" - including packing Christmas cards and gift tags for Tesco for at least the past two years.
Mr Humphrey said prisoners also make packaging and tags for Western clothing and that he had seen the names of other high street brands on the tags when he was in the prison.
Image:Peter Humphrey was jailed after being accused of breaching privacy laws
Tesco donates £300,000 a year to the British Heart Foundation, Cancer Research UK and Diabetes UK from the sales of the cards.
A Tesco spokesman told Sky News: "We would never allow prison labour in our supply chain.
"We were shocked by these allegations and immediately halted production at the factory where these cards are produced and launched an investigation.
"We have a comprehensive auditing system in place and this supplier was independently audited as recently as last month and no evidence was found to suggest they had broken our rule banning the use of prison labour.
"If evidence is found we will permanently de-list the supplier."
Image:Tesco has halted production at the Zheijiang Yunguang Printing factory
Mr Humphrey said he did not believe British companies would "knowingly commission prison labour, but they may never be able to tell if their Chinese suppliers are sub-contracting production to the prison system".
He said auditors are not allowed into the prisons so there is "little chance of unravelling the secretive business arrangements that have turned the jail system into a lucrative profit centre for the Chinese state".
Image:The note allegedly came from prisoners in Qingpu's foreign prisoners' unit
A spokesperson for the British Heart Foundation Cancer Research UK and Diabetes UK said: "Like Tesco, we're shocked by these allegations. We are in touch with Tesco, who have assured us that these particular cards have been removed from sale, and that the factory producing them has been suspended while they investigate further. We await the outcome of Tesco's full investigation."
In 2017, Jessica Rigby, from Braintree, found a message in a Christmas card from Sainsbury's which read in Chinese: "Wishing you luck and happiness. Third product Shop, Guangzhou Prison, Number 6 District."
And in 2014, a woman in Belfast said she had found a note written in Chinese and wrapped inside a prison identity card inside some trousers from Primark.
The note, which had SOS at the top, claimed inmates at Xiangnan jail in Hubei, China, were forced to work 15-hour days producing clothes.
Primark said it regularly inspected its factories and "no prison or other forced labour of any kind was found during these inspections".
Carnival Cruise Line has sent out an update to cruise passengers who are scheduled to board Carnival Glory tomorrow. The cruise will not be canceled but will leave port a few hours later than originally scheduled. The letter sent to passengers can be read below:
“Dear Carnival Glory Guest,
We are looking forward to welcoming you on Carnival Glory tomorrow and want to provide you with an update on your cruise, following the accident that took place yesterday in Cozumel.
The ship is on its way to New Orleans and will dock tomorrow morning to operate your cruise. With the exception of a section in the aft Platinum Dining Room, all features are operating and all activities will be offered, including the Christmas dinner menu we know our guests love.
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Our team is working hard to complete weather-proofing and cosmetic work to the damaged area in the aft restaurant and this will require that we depart at midnight on Sunday.
Please push back your Arrival Appointment by two hours and make plans to arrive within your new time (i.e., if your Arrival Appointment was 11:30 AM to 12:00 PM, please arrive at 1:30 PM to 2:00 PM). All guests must be on board by 5:00 PM. Please note, our call to Cozumel will now be moved to Friday, instead of Tuesday (tours will be automatically adjusted to the new day).
Given the impact to the aft restaurant, we will have to make some adjustments to our dining plan for next week’s cruise. Some guests who requested assigned dining will have to move to “Your Time Dining.” (Guests on ‘Your Time’ open seating may dine any time in the Main Dining Room between 5:30 PM and 9:00 PM. Guests are seated on a first come, first served basis depending on party size.) Our team on board will do everything possible to accommodate affected guests to minimize any impact. Guests being moved will be contacted directly via separate email prior to boarding.
In the event we have additional information to share, please sign up for text alerts by texting CCL1 to 278473 (CRUISE).
We appreciate your patience and understanding as we prepare for your arrival. We are committed to ensuring you have a fun and memorable cruise!”
Carnival Glory is scheduled for a seven night cruise to the Western Caribbean from New Orleans on December 22, 2019. The ship will visit Cozumel, Costa Maya, and Roatan.
A six-year-old girl who found a message from a prisoner in China inside a Tesco Christmas card has said she "thought it was a prank".
Florence Widdicombe told Sky News "it was really weird" to find the note in the charity card.
The message read: "We are foreign prisoners in Shanghai Qingpu prison China. Forced to work against our will. Please help us and notify human rights organisation."
Image:Tesco sells the Christmas cards to raise money for UK charities
Image:Qingpu Prison is near to Shanghai
Tesco said it was shocked by the find and had started an investigation, and has also stopped working with the Chinese factory where the card - decorated with a kitten wearing a Santa hat - was made.
The message inside named the former journalist Peter Humphrey as a contact, who spent two years in the same prison.
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Florence, who lives with her family in Tooting, London, said: "I was sitting down at the table writing my cards to my friends when I opened one and started laughing because someone had already written in the card.
"Then I passed it on to my mum. It took an hour to get our heads round it because we thought it was a prank."
More from China
Her father Ben Widdicombe said he was unsure of the veracity of the message, but contacted Mr Humphrey.
He told Sky News: "After some reflection we thought that if someone was genuinely desperate enough to write that card we should take it seriously. When I tracked Peter down on the internet, I came across this story and it became very serious and quite chilling in a way."
Image:Ben Widdicombe says he's glad to bring the card to the attention of people who can help
Mr Humphrey said the message from Mr Widdicombe took him back to the "painful two-year period" when he and his wife were imprisoned over "bogus charges".
Writing in the Sunday Times, Mr Humphrey said he did not know who wrote the message but had "no doubt" they knew him during his time in the prison, which is 62 miles (100km) from the Zheijiang Yunguang Printing factory where the cards are supposed to be made.
He said ex-prisoners had confirmed that inmates in the foreign prisoner unit "are being forced into mundane manual assembly or packaging tasks" - including packing Christmas cards and gift tags for Tesco for at least the past two years.
Mr Humphrey said prisoners also make packaging and tags for Western clothing and that he had seen the names of other high street brands on the tags when he was in the prison.
Image:Peter Humphrey was jailed after being accused of breaching privacy laws
Tesco donates £300,000 a year to the British Heart Foundation, Cancer Research UK and Diabetes UK from the sales of the cards.
A Tesco spokesman told Sky News: "We would never allow prison labour in our supply chain.
"We were shocked by these allegations and immediately halted production at the factory where these cards are produced and launched an investigation.
"We have a comprehensive auditing system in place and this supplier was independently audited as recently as last month and no evidence was found to suggest they had broken our rule banning the use of prison labour.
"If evidence is found we will permanently de-list the supplier."
Image:Tesco has halted production at the Zheijiang Yunguang Printing factory
Mr Humphrey said he did not believe British companies would "knowingly commission prison labour, but they may never be able to tell if their Chinese suppliers are sub-contracting production to the prison system".
He said auditors are not allowed into the prisons so there is "little chance of unravelling the secretive business arrangements that have turned the jail system into a lucrative profit centre for the Chinese state".
Image:The note allegedly came from prisoners in Qingpu's foreign prisoners' unit
A spokesperson for the British Heart Foundation Cancer Research UK and Diabetes UK said: "Like Tesco, we're shocked by these allegations. We are in touch with Tesco, who have assured us that these particular cards have been removed from sale, and that the factory producing them has been suspended while they investigate further. We await the outcome of Tesco's full investigation."
In 2017, Jessica Rigby, from Braintree, found a message in a Christmas card from Sainsbury's which read in Chinese: "Wishing you luck and happiness. Third product Shop, Guangzhou Prison, Number 6 District."
And in 2014, a woman in Belfast said she had found a note written in Chinese and wrapped inside a prison identity card inside some trousers from Primark.
The note, which had SOS at the top, claimed inmates at Xiangnan jail in Hubei, China, were forced to work 15-hour days producing clothes.
Primark said it regularly inspected its factories and "no prison or other forced labour of any kind was found during these inspections".
The Carnival Glory was "maneuvering to dock" when it hit the Carnival Legend, which was already docked in Cozumel, Mexico, Carnival CruiseLine said. Six guests with minor injuries went to the Carnival Glory medical center for evaluation.
The vessel set sail from the Cozumel port late Friday. It is expected to arrive at the Port of New Orleans at 6 a.m. Sunday, the Port of New Orleans website says.
"The ship has been inspected by required authorities and there are no issues that impact our ability to sail safely back to New Orleans," the Glory's captain, Pero Grubjesic said in a letter obtained by CNN that was provided to the cruise ship's passengers.
A formal investigation is underway to determine the cause of the crash, Grubjesic said in the letter. The cruise line believes the collision "was due to spontaneous wind gusts and strong currents," he wrote.
Carnival (CCL) describes the incident as an allision between the two ships. An allision is a nautical term used to describe when a moving ship collides with a stationary object, such as another ship.
As a result of the crash, the cruise line provided passengers with a $100, per room, onboard credit, the captain's letter said.
CNN's Dave Alsup and Paul P. Murphy contributed to this report.
