COMMERCIAL IN CONFIDENCE
that was concerned lest the CEGB do a great deal of work which was not along broadly the same lines that CLP/PEPCO had in mind (just as we had clearly spent several weeks in London seeking a solution which we now recognise was not the kind of approach which Sir Lawrence himself wanted). Sir Lawrence said that he was prepared for Air Stones (deputy general manager, CLP) to come to London to give a steer but he did not want CLP to be part of the team doing the work in the UK. He was anxious that CLP should be in a position to veto particular points in the CEGB design and did not want to be told that the CLP members of the team had agreed particular points while they had been in the UK.
7 In more general discussion, Sir Lawrence said that it was essential for us to recognise that the financial situation in respect of this project had changed dramatically since he had been in London. At that time he had genuinely doubted whether it was possible to raise the money for the investment. The position had now changed completely and as Esso were in principle prepared to put up 60% of the funds required, Esso had to be convinced that buying the power station from Britain made commercial sense. It was Esso's policy never to go for negotiated contracts for any major investment and it would not be easy to persuade them that it was right to avoid international tender in this case. He personally had persuaded Mr Duncan (Chairman, PEPCO) that CLP/PEPCO should at least see whether a competitive price could be obtained without going to international tender: Mr Duncan remained privately sceptical about Sir Lawrence's initiative.
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DINNER WITH MR STONES (FORMERLY OF THE CEGB AND NOW DEPUTY GENERAL MANAGER, CLP)
Mr Stones was seconded from the CEGB to advise CLP on the problems it was having with a GEC power station at Tsing Yi. He persuaded an, at first, sceptical CLP Board that the problem lay more in the poor quality of the CLP operational staff than in the quality of the equipment. Having later joined CP on a more permanent basis, Mr Stones persuaded Sir Lawrence that CLP should float the possibility in Britain that Drax B should not be built but that the resources should be used to provide Hong Kong with a power station at a very commercial price.
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Mr Stones invited Mr March (BTC) and myself to dinner at which he stressed three points:
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he was becoming anxious that Sir Lawrence Kadoorie's "Cloud 9" approach to the issue with its wider ramifications involving the development of trade
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