PP DT I

GR 480

CYPHER/CATA

CE

51

18 JUL 1977

NICKIGA

FM BTC HONG KONG 151031Z

CONFIDENTIAL

NO DISTRIBUTION

порезадот ра

141

NEXT

REF.

140

TO PRIORITY D T I TELNO.CREDA 103 OF 15 JULY.

K129 TRED(2)

PUSD (2)

FOR MACDONALD IC2. YOUR CREDA 166: POWER STATION PROJECT.

X

1. I AM GRATEFUL FOR THIS CLARIFICATION OF THE ROLE ENVISAGED FOR THE CEGB. STONES, HOWEVER, HAS RECEIVED A LETTER FROM GEOFFREY SHEPHERD, CHAIRMAN OF MIDLANDS ELECTRICITY AND A MEMBER OF THE CEGB BOARD, WHICH INCLUDES THE PHRASE "IT NOW SEEMS CLEAR THAT CEGB WILL NOT BE INVOLVED IN THE MAKING OF THE PACKAGE AND HENCE COMPLETELY FREE TO ACT AS YOUR CONSULTANTS''

ALTHOUGH SHEPHERD'S LETTER IS PRIVATE AND PERSONAL, THIS KIND OF PHRASEOLOGY CAN CREATE MISUNDERSTANDING WHEN COMPARED WITH THE STATEMENT IN PARA.2 OF LIPPITT'S TELNO.46 THAT **THE CEGB HAS NOW APPOINTED A SENIOR TEAM TO WORK ON THIS PROJECT ON OUR BEHALF.

2. I HAVE THEREFORE SPOKEN TO STONES ON THE LINES OF PARA.3 OF YOUR CREDA 166. HE IS DELIGHTED FOR THE CONFIRMATION THAT CLP CAN RELY ON CEGB'S EXPERT ASSISTANCE AND REGARDS THEIR INVOLVEMENT AS AN IMPORTANT FACTOR IN PERSUADING EXXON THAT CLP/PEPCO ARE GETTING A GOOD DEAL FROM HMG.

3. I THINK STONES WOULD WELCOME OFFICIAL CONFIRMATION OF THE ROLE OF CEGB AND WOULD LIKE YOUR APPROVAL TO WRITE TO HIM ON THE FOLLOWING LINES:-

BEGINS:

FURTHER TO MY LETTER OF 14 JULY SETTING OUT THE TOPICS WHICH THE CEGB TEAM, CURRENTLY IN HONG KONG, WISH TO DISCUSS WITH CLP, I AM WRITING TO CONFIRM THAT THE INVOLVEMENT OF THE CEGB HAS BEEN ARRANGED BY HMG IN ORDER TO FACILITATE THE PREPARATION OF THE PACKAGE WHICH WILL BE PRESENTED TO CLP/PEPCO IN AUGUST. THE INTENTION IS THAT HMG'S COMPREHENSIVE PROPOSALS WILL INCLUDE A FORMAL OFFER OF THE EXPERIENCE AND SERVICES OF THE CEGB TO ACT ON BEHALF OF CLP/PEPCO TO ENSURE THAT ALL STAGES OF TH' POWER STATION DEVELOPMENT AND START UP ARE SUCCESSFUL. SUCH INVOLVEMENT

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