CONFIDENTIAL

DRAFT TELEX TO BRITISH TRADE COMMISSIONER HONG KONG

HONG KONG POWER STATION PROJECT

Following Sir Lawrence Kadoorie's discussion with the Prime Minister, we wish you to put the following specific proposals

to Sir Lawrence:

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British Industry is offering in principle a capability to carry out a ten year development programme on behalf of China Light and Power, incorporating a power station; transmission equipment; pump storage scheme; dock handling facilities; desalination plant.

Specifically we would begin with phase one which, we understand, would incorporate a 2 x 350 MW dual fired power station; dock side facility for coal handling; 400 KV transmission line; and, if required, pump storage equipment.

British Industry would enter into negotiated turnkey contract on the basis that the price of the imported element of contract would be on a par with other bids by these companies accepted elsewhere in the world.

The principal companies to be involved in programme will be: GEC, Babcock and Wilcox, Balfour Beatty Weir Group. If China Light and Power wished civil Engineering work to be carried out by a company based in Hong Kong, UK Industry could be interested in a joint venture arrangement.

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