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TO IMMEDIATE D.T.I TELNO.CREDA 289 OF 26 NOVEMBER 77.
YOUR CREDA 365: POWER STATION PROJECT.
1,
1. EXXON'S LINE ON GAS TURBINESS DERIVESS FROM RESERVATION IN ELECTROWATT LETTER. STONES CONFIRMS THAT 3000 MW IS NOW REQUIRED AND AGREES TO THREE MAN GEC TEAM COMING OUT TO DISCUSS THIS ON
DECEMBER 3. WEEDON HAS ALREADY INFORMED DAVIDSON OF GEC AND WILL MAKE NECESSARY ADMINISTRATIVE ARRANGEMENT FOR GAS TURBINE
EXERCISE.
2. AS SIR LAWRENCE IS NOT AWARE THAT STONES HAS SHOWN ME THE ELECTROWATT LETTER, I DO NOT REPEAT NOT ADVISE THAT LIPPITT SHOULD SPEAK TO KADOORIE AT THIS STAGE. I HAVE HOWEVER TOLD STONES OF YOUR CONCERN THAT EXXON SHOULD TALK IN TERMS OF SPLITTING THE PACKAGE. I THINK WE CAN PRE-EMPT FURTHER PRESSURE FROM THEM BY LOOKING AT THIS SECTION OF OUR OFFER IN THE LIGHT OF CLP'S INCREASED REQUIREMENTS. STONES TELLS ME THAT HE IS SEEKING TO DISSUADE ROY SMITH (EXXON) FROM PRESSING THE POINT AT BOARD LEVEL. AS IT IS A SPECIFIC ELECTROWATT CRITICISM, HE HOPES WE CAN TAKE ADVANTAGE OF HIS FOREWARNING OF 300 MW REQUIREMENT TO WORK SOMETHING INTO THE DISCUSSION WHICH GEC WILL START ON DECEMBER 3 AND THUS FRUSTRATE ANY INTENTION BY EXXON TO MAKE AN ISSUE OF OUR GAS TURBINE QUOTE.
3. I HAVE EXPLAINED YOUR DIFFICULTIES ABOUT USE OF CEGB CONTRACTS MAN TO STONES. PERHAPS WE HAVE NOT EXPLAINED EXACT NATURE OF HIS REQUEST. HE RECOGNISES THAT CEGB WOULD NOT WISH TO BECOME ENGAGED IN NEGOTIATION OR ARBITRATION ON CONTRACTURAL DETAILS. BUT IT WOULD HELP HIM CONSIDERABLY, BOTH AS CLP'S PROJECT DIRECTOR AND IN HIS TASK OF CONVINCING THE CLP BOARD OF THE VALUE OF THE CEGB CONNECTION, IF CEGB COULD PROVIDE EXPERTISE IN THE CONSTRUCTION OF A MEANINGFUL LEGAL FORMULATION. HE WISHES THE CONTRACT DOCUMENT TO BE IN BEST CEGB STYLE AND SEEKS TO AVOID HAVING TO RESORT TO LOCAL LEGAL EXPERTS. HE AND BROOKS CAN HAGGLE OVER THE COMMERCIAL DETAILS BUT HE IS LOOKING FOR HELP FROM MILLER WITH THE OUTLINE LEGAL FORMAT.
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