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CONFIDENTIAL
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TO ROUTINE D T I TELNO CREDA 297 OF 3 DECEMBER 1977.
FOR MACDONALD I C 2. POWER STATION.
SIR LAWRENCE TELEPHONED LAST NIGHT TO TELL ME THAT THE ELECTROWATT
PRESENTATION HAD GONE WELL. THERE HAD HOWEVER BEEN ONE ADDITIONAL
CRITICISM WHICH HE HAD BEEN ASKED TO BRING TO MY ATTENTION.
2. THIS CONCERNS THE PROVISION FOR PAYMENTS AT THREE MONTHLY
INTERVALS TO THE CONTRACTORS INSTEAD OF THE USUAL SIX''. I
SAID THAT THIS APPEARED TO BE ANOTHER ATTEMPT TO UNRAVEL OUR
PACKAGE WHICH SHOULD BE LOOKED AT IN ITS ENTIRETY BUT THAT I
WOULD REPORT HIS MESSAGE. I DID NOT FORM THE IMPRESSION THAT. THIS IS A SERIOUS POINT. SIR LAWRENCE'S MAIN CONCERN REMAINS THE
ESCALATION PROVISIONS.
3. SIR LAWRENCE ALSO REPEATED HIS HOPE THAT THE EHV TRANSMISSION
SYSTEM BE INCLUDED IN THE PACKAGE. I POINTED OUT THE TIMING
RESTRAINTS GIVEN THAT CLP COULD NOT FORMULATE EXACT PLANS
IN ADVANCE OF A DEFINITE SITE. HE SAID THAT HE ACCEPTED THIS BUT HOPED THAT IT WOULD BE POSSIBLE TO COVER THE FIRST STAGE 1.E. FROM THE LANTAU CHANNEL CROSSING TO CLP'S MAJOR DISTRIBUTION CENTRE AT HAMMER HILL (JUST NORTH OF KAI TAK AIRPORT).
4. FINALLY SIR LAWRENCE ALSO SAID THAT HE WAS CONCERNED ABOUT THE FORM OF THE LETTER OF INTENT. HE PREFERRED TO HAVE REFERENCES TO HM G 'S INVOLVEMENT. WE MAY BE ABLE TO DEAL WITH THIS BY A COVERING LETTER BUT WILL HAVE TO AWAIT A CLEARER DEFINITION OF SIR LAWRENCE'S THINKING WHEN CLP HAVE COMPLETED THEIR STUDY OF OUR DRAFT.
MARCH