Addressed to:

DRAFT

File No.

Copies to:

Originated by:

(Initials and date)

CONFIDENTIAL

PRH Wright Esq

Private Secretary to the Prime

Minister

10 Downing Street

London SW1

Seen by:

(Initials and date)

Enclosures:

Type for signature of

DEPARTMENT OF INDUSTRY

HONG KONG POWER STATION PROJECT

My Secretary/Minister of State has seen your letter

of 9 May which recorded that the Prime Minister had

asked that HM Ambassador in Tokyo should be informed of

the Prime Minister's discussion of the Hong Kong power

station project with the Japanese Prime Minister the

previous day.

(Initials and date)

The Secretary/Minister of State agrees that we must

keep HM Ambassador in Tokyo informed about the China

Light and Power discussions. However, in his opinion

the Government needs to be careful not to put too much

overt pressure on the Japanese in respect of this

contract. If it became known that Britain had exerted

trong pressure on Japan not to put in a competitive

tender (and it would be difficult for us to do this

without it becoming known) the repercussions might be

embarrassing especially in Hong Kong. For it would

appear that Hong Kong consumers were being required to

Forin SS/23

DO NOT TYPE ON REVERSE USE A CONTINUATION SHEET

5320/514L D434431 40M 7/75 TP Gp 839

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