MEMORANDUM USED AS AGENDA FOR SIR LAWRENCE KADOORIE
IN DISCUSSION WITH MR. ALAN WILLIAMS AND SIR PETER CAREY
ON WEDNESDAY, 30 MARCH, 1977
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I have come to England for the specific purpose of maintaining, as far as possible, my Company's policy, over these past many years, of buying British.
Any proposals I make in the course of my argument has this principal
in view.
This memorandum is inspired by a study of a December 1976 Report by the Central Policy Review Staff entitled "The Future of the United Kingdom Power Plant Manufacturing Industry", which together with the circumstances which exists today in England, in China and in Hong Kong, indicate a unique opportunity which, if taken immediately, could have a profound effect on the future relations of these three countries.
The situation, as identified in the Think Tank Report, appears to be that the United Kingdom Power Plant Manufacturing Industry is under grave threat and that unless a Government rescue operation is put into effect immediately, the labour force in and associated with the power plant industry in the U.K. will be reduced by approximately 30,000 men. The net cost to the Exchequer will be about £110 million in the year following the redundancies.
The C.P.R.S. report made the following recommendation that possible measures for action with shorter term aims are:-
(a) bring forward one power station order (e.g. Drax, Stage II); and
provide additional assistance to exports.
(b)
Note: Criticism of (a) above is that the C. E.G. B. would be stuck with
a station that it did not need.
Subject to satisfactory conclusion of negotiations for a Scheme of Control now under discussion with the Hong Kong Government which will ensure the repayment of the financial obligations involved: the thought has arisen that if Britain was to make it possible to build a new power station in Hong Kong to CL&P/PEPCO requirements, it would have the advantage of:-
contd/.....