Mr Dales
R
CONFIDENTIAL PS / Love 5-"
-j Ark.7/1
HKK 16+!!
Sy wil be goal
18
плив
of Linde forming. Helen
1
world recein
CL.K.
HONG KONG: GENERATING EQUIPMENT FOR THE CHINA LIGHT AND POWER COMPANY
1. You asked for advice on Lord Rhodes' request that the Secretary
of State should see Sir Lawrence Kadoorie, the Chairman of the China Light and Power Company (CLP) (your minute of 28 March to Mr Stewart, who is in Hong Kong).
Flag A 2. I attach copies of Hong Kong telegram No 268 of 12 March, which
(8 explains the purpose of Sir Lawrence Kadoorie's visit to London, and
Flag B of the PUS's reply in FCO telegram No 199 of 17 March.
3.
The DOI, who are the lead department in connection with Sir Lawrence Kadoorie's visit, have arranged for Mr Alan Williams MP, the Minister of State concerned with power stations, to see Sir Lawrence at 2.45 pm tomorrow, Wednesday, 30 March. Sir Peter Carey will be seeing Sir Lawrence separately afterwards. The Secretary of State for Industry would probably have seen Sir Lawrence but he is otherwise engaged tomorrow afternoon, which was the only time that the DOI understood that Sir Lawrence had free for his discussions. I assume that he would stay on longer in London if there were a chance of his seeing other Ministers. As you know, Lord Rhodes has asked whether the Prime Minister would see Sir Lawrence, a suggestion that the DOI and we have advised against, at least for the time being.
4.
The DOI have told me today that they and British suppliers of generating equipment are determined to make every effort to obtain the contract for supplying generating equipment to the CLP. The CLP have always bought British equipment in the past and the DOI's view is that if British industry cannot win the contract this time there is no prospect of their breaking the Japanese domination of the overseas market for power stations (Japanese companies have recently won large contracts in South Korea and Canada and the DOI expect them to win one in Australia that is coming up). At the same time, this will not be at all easy since hitherto the Japanese have been able to offer generating equipment at about 30% below the price that British
/suppliers
LACT
CONFIDENTIAL
REF
Q