of a separate tender for boiler plant. Mr Havelock confirmed that Babcocks were capable of supplying this equipment. As far as Parsons were concerned although they had the technical ability to supply the generator plant, there was still uncertainty about the extent of their interest in this project. It was agreed to proceed solely with GEC for the time being pending the outcome of the current discussions which
Sir James Woodeson (Clarke Chapman/Reyrolle Parsons) was having with CLP in Hong Kong.
Action: MEPT to sound out Babcocks on their intentions in respect of this project.
4 Mr Lippitt's view was that the proposed Joint Group ought initially to include only those companies with an interest in Stage I of CLP's plans, that is, the power station project. If the project developed as CLP had outlined similar arrangements could be made to include UK companies with an interest in the plant involved in the subsequent stages such as the desalination plant. It was generally agreed to proceed in this way. Mr Lipnitt added that as British Electric International were CLP's consultants, they ought to be kept in the picture and consulted as necessary.
Possible methods of assistance.
5 Mr Lippitt said that he hoped the contract would be pursued so far as possible on a commercial basis. Nevertheless it would be necessary to consider how HMG could assist if required, Various methods of assisting the exports of power plant had been discussed in a paper by the Official Committee on Industrial Affairs (ICŌ(77)18) which was now to be considered by a committee chaired by the Home Secretary. To what extent were such measures suitable for this contract?
i
relief from main contractor contingent liability along the lines of that arranged for the recent power station contract for Saudi Arabia (Al Jubail). Mr Baker recalled that it was the intention to limit this kind of assistance to cash contracts, as the Al Jubail contract had been. DoT were currently considering a number of further cases, all of them cash deals with Saudi Arabia, but the final decision in each case rested with the Treasury. Mr Paxman and Mr Havelock said that, as far as they were aware, CLP had not yet decided how to finance the project but that the final arrangements would almost certainly involve credit of some kind. It was agreed that the 'Al Jubail' type of assistance might be suitable for the CLP project, particularly if CLP decide to invite a UK company to take on more than one stage of the project as a turnkey operation. The scope for its application could not be assessed until more was known about CLP's financial plans.