CONFIDENTIAL
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NOTE OF MR WILLIAMS' MEETING WITH SIR LAWRENCE KADOORTE HELD ON 25 JULY 1977 AT MILLBANK TOWER
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Present:
Mr Williams Mr Lippitt
Mr Clark
Mr Macdonald
Sir Lawrence Kadoorie
In a general discussion about progress on the Hong Kong power station project, Sir Lawrence made the following main points:-
(i)
(ii)
(iii)
(iv)
(v)
Financing of the scheme in HK dollars was an important attraction to CL & P, because it eliminated exchange risks. He saw no problem over finance as long as each side was clear whom their respective advisers were.
Esso in San Francisco had recently reaffirmed their confidence in continuing to invest in Hong Kong over the next 25 years. This was good.
There had been a reaction from the Chinese about coal supplies, following discussions held on 5 May 1977. Advice had been received from Peking that it would be difficult at this stage to consider the feasibility of supplying coal for the new project, but that nearer the time of its completion the question of coal supplies for it would be examined again. Sir Lawrence considered this to be a favourable and a speedy response in Chinese terms, and had responded by saying that CL & P would be flexible in their designs in order to allow as many different grades of coal to be used as possible.
He had learnt that Mitsubishi of Japan had been approached by the Chinese with a view to providing port facilities; mining machinery etc for China in return for 5 million tons of oil and 50 million tons of coal per annum after 1980.. Mitsubishi did not think Japan could accept such a big deal at the present time, but would be sending a team to Peking to discuss it. Sir Lawrence had told the HK Government about this, and would tell Sir D Ezra when he saw him later in the week.
He was not planning to be back in Hong Kong until about 18 September. There was no reason why the Department's presentation in Hong Kong could not take place before his return there. Speed was important, but it would be all right to delay the presentation until September as long as activity in the meantime could be convincingly demonstrated.
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