COMMERCIAL IN CONFIDENCE
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iii the CLP/PEPCO interests expressed a clear preference for an arrangement whereby the main supplying companies came together in a single company that took on orders as they were made. I was left in no doubt that Sir Lawrence hoped we would explore the possibility of the National Enterprise Board having some role within the company and the Esso interests said that they would find it
"highly attractive" if the CEGB were the consultants of such a company.
In the light of discussion I said that when I returned to London I would explore urgently the possibility of HMG submitting more definite proposals to CLP/PEPCO within the next two months.
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MEETING WITH SIR MURRAY MACLEHOSE, GOVERNOR OF HONG KONG ON WEDNESDAY 15 JUNE AT 12.00
Mr March and I made a courtesy call on the Governor at which I expressed Sir Peter Carey's appreciation of
the interest which the Governor had taken in this project and brought him up to date with cur discussions over the previous days.
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The Governor said that he had never been in any doubt that what would decide whether or not British companies won the power station contract was whether its offer of generating equipment was made at a price that appeared to be competitive with a likely Japanese tender. He suggested that we should not rule out the possibility that CLP would take as its "base caso" the Japanese bids which had recently been put in for a contract in Taiwan.
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The Governor added that besides a competitive bid and matching credit terms there were a number of elements which might be added which could have the effect of avoiding a comparison of the British bid against a Japanese tender. The Governor had in mind four possibilities:
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the provision by the CEGB at no extra charge of design and co-ordination expertise;
Despite
UK equity input into the purchasing company. the comments which had been made in discussion, the Governor felt we should not rule out the possibility of an equity investment in the purchasing company. He said that he had two reasons for saying this.
First,
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