CONFIDENTIAL
V) USE WOULD BE MADE OF THE EXPERTISE AND FACILITIES OF THE CENTRAL ELECTRICITY GENERATING DO ARD, ESPECIALLY IN RESPECT OF THE COMMISSIONING AND OPERATION OF THE POWER STATION, UK INDUSTRY WOULD ALSO MAKE USE OF THE EXPERIENCE OF THE NATIONAL
COAL BOARD.
VI) THE BRITISH GOVERNMENT WOULD OFFER FAVOURABLE BUYER CREDIT TERMS FOR AN AMOUNT EQUAL TO 100 PERCENT OF THE VALUE OF UK GOODS AND SERVICES WHICH ARE TO BE SUPPLIED UNDER THE CONTRACT.
CILITY
VII) THE BUYER CREDIT FACILITY WOULD BE DENOMINATED IN US DOLLARS. IF SIR LAWRENCE WISHED, WE WOULD EXPLORE THE POSSIBILITY OF DENOMINATING THE BUYER CREDIT LOAN IN HONG KONG DOLLARS OR OTHER WAYS OF MINIMISING THE EXCHANGE RISK.
VIII) THE BRITISH GOVERNMENT WILL, OF COURSE, PROVIDE ALL viii ASSISTANCE THAT IT CAN TO FACILITATE EXPORT OF COAL FROM CHINA AND SALE OF UK MINING EQUIPMENT TO CHINA.
IX) A TEAM LED BY MYSELF TOGETHER WITH LAZARDS, WHO ARE ADVISING THE DEPARTMENT, WISHES TO VISIT SIR LAWRENCE TO DISCUSS BEST MEANS OF IMPLEMENTING PROGRAMME. THIS WOULD INCLUDE THE FEASIBILITY OF INVESTMENT BY UK IN NEW HONG KONG COMPANY (WHOSE OTHER SHAREHOLDERS MIGHT BE CHINA LIGHT AND POWER, PEPCO, AND INVESTING PUBLIC) WHICH WOULD PURCHASE FACILITIES. THE OBJECTIVE WOULD BE FOR THE PROJECT TO BE SELF FINANCING OUT OF FUTURE REVENUES.
THESE PROPOSALS HAVE BEEN SEEN AND APPROVED BY THE PRIME MINISTER. WE HOPE THAT SIR LAWRENCE WILL CONSIDER THAT THEY HAVE SUFFICIENT ATTRACTION FOR HIM TO WELCOME DEPARTMENT OF INDUSTRY AND BRITISH INDUSTRY TEAM IN HONG KONG TO NEGOTIATE FURTHER AT A SUITABLE
DATE BEFORE END JUNE.
OWEN
FILES
HK & GD
(5)
FED
PS/LORD GORONWY
ROBERTS
TRED
FRD
PS
PS/MR JUDD
PS/PUS
MR CORTAZZI MR BUTLER
MR MURRAY
ADDITIONAL DISTRIBUTION HONG KONG POWER
STATION PROJECT
2 CONFIDENTIAL
H