COMMERCIAL IN CONFIDENCE
HONG KONG POWER STATION PROJECT
Notes of the meetings in Hong Kong during the visit by
Mr Macdonald (Department of Industry) and fir Gemmill (Lazards), 13-19 June 1977
Α
MEETING WITH CHINA LIGHT AND POWER ON MONDAY 13 JUNE AT 4.30pm
1 Those present at the first meeting were: Sir Lawrence Kadoorie (Chairman, China Light and Power); Mr Barrett and Mr Stones (respectively general manager and deputy general manager, CLP); Mr Duncan (Chairman, PEPCO); Mr Birkhead (Financial Director, Esso, Hong Kong); Mr Bishoff and Mr Turnbull (representatives of Schroder and Chartered Bank); Mr March (senior British Trade Commissioner, Hong Kong) Mr Gemmill and myself. (Sir Sidney Gordon, deputy chairman, CLP, was on leave and we did not see him during our stay.)
2
Sir Lawrence Kadoorie opened the meeting by stating that he had had many discussions in London in March on the desire of CLP/PEPCO to purchase British plant for a major expansion of Hong Kong power generating capability provided this could be supplied "at a price which could be shown to be competitive, having regard to quality, reliability and back-up service". Tentative possibilities as to how this could be achieved had been discussed in London but the onus of providing a practical and definite proposal had been placed on the UK Government. He had now received the outline of certain proposals, following Mr Lippitt's telegram to Hong Kong. In respect of that telegram, he wished to have a clear definition of the "British industry" which was offering in principle the capability to carry out the development programme and to enter into a negotiated turkey contract. In his view, an essential element of his approach to the UK Government was to promote the direct interest of the UK Government possibly through a team appointed by them or some other "chosen instrument" to act for them in Hong Kong. In his view the confidence shown by this involvement would play a most important part in bringing about a merger of interests and a smooth transition to a future relationship between Hong Kong and China.
3 Sir Lawrence said that what he had asked for was a proposal from the UK Government and when this was presented he should wish to know exactly with whom CLP/PEPCO were dealing and the part the UK Government would play in the talks and in bringing about a satisfactory conclusion to the project. While he considered that the proposals which had been sent from London provided a useful basis for discussion, he had been surprised to receive a telex from Balfour Beatty from which it appeared