HOFO 041/26

FP DT I

GR 175

CYPHER, CAT A

FM BTC HONG KONG 261115Z

N

CO

FIDENTIAL

NO DISTRIC

158

[#2 DOT/CRE]

Deep. Rm 129K Deep. HK TRED (5)

TO PRIORITY D T I TELNO CREDA 113 OF 26 JULY.

FOR MACDONALD 1C2.

(

R.F

Хессиз?

YOUR CREDA 176.

POWER STATION PROJECT.

2 C JUL1977

HKK 164

}

I HOPE YOU WILL LET ME HAVE A BRIEF REPORT BY TELEGRAM ON SIR LAWRENCE KADOORIE'S MEETINGS. I AM CONCERNED LEST A TWISTED VERSION SHOULD GET BACK TO HONG KONG WITHOUT ME BEING IN A POSITION

TO PUT THE RECORD STRAIGHT.

2. WHEN I SAW STONES THIS AFTERNOON I PRESSED HIM AGAIN FOR AN INDICATION OF THE BALL PARK'' FIGURE WHICH HE WOULD LIKE TO SEE IN OUR PACKAGE. HE SAID THAT HE IS RELUCTANT TO DO SO UNTIL HE KNOWS EXACTLY WHAT ELEMENTS WOULD BE COVERED. HE REITEREATED THAT HE BELIEVES AN OFFER COMMENSURATE IN PRICE AND SCCPE WITH PARSONS BID FOR THE LOYANG PROJECT IN AUSTRALIA WOULD BE A GOOD STARTER IF LINKED WITH THE FREE PROVISION OF CEGS EXPERTISE AND OPERATING ASSISTANCE. HE TOLD ME THAT THE PLUG WHICH WEAVING'S TEAM HAD GIVEN FOR THE CEGB HAD IMPRESSED HOWARD DUNCAN WHO REMAINS UNDER PRESSURE FROM EXXON HEADQUARTERS IN HOUSTON TO ENSURE THAT OUR PRICE IS IN CONFORMITY WITH THE BEST OF VALID CURRENT INTERNATIONAL

TENDERING. STONES BELIEVES THAT HOUSTON ARE GETTING WORRIED THAT IT WILL BECOME INCREASINGLY DIFFICULT FOR THEM TO BOW OUT FROM OUR NEGOTIATIONS AND THAT HOWARD DUNCAN IS THEREFORE UNDER INSTRUCTIONS

TO KEEP HIS EXIT LINES CLEAR. WE MUST THEREFORE BE CAREFUL TO ENSURE THAT DUNCAN DOES NOT GAIN THE IMPRESSION THAT SIR LAWRENCE KADOORIE

IS FIXING MATTERS BEHIND THE SCENES IN LONDON AND I SHALL NOT REVEAL THAT HE HAS SEEN THE PRIME MINISTER UNLESS THE NEWS LEAKS BY

ANOTHER ROUTE.

MARCH

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