FROM

Do

CONFIDENTIAL

4KK 164

#кад

241

TO PRIORITY BTC HONG KONG TELNO CREDA 358 OF 21 NOVEMBER.

POWER STATION PROJECT

15.20/

Jas

BROOKS LEFT HEATHROW FOR HONG KONG SUNDAY, TAKING FIVE VOLUMES

OF FURTHER WORK BY GEC (AND FURTHER MATERIAL BY BALFOUR BEATTY) ON

POWER STATION PROJECT AND TOP COPY OF FOLLOWING LETTER TO KADOORIE

FROM LIPPITT:

QUOTE DURING OUR DISCUSSIONS IN HONG KONG LAST MONTH, WE RECOGNISED THAT FREIGHT COSTS REPRESENTED THE ONE AREA OF OUR

PROPOSALS WHERE I MIGHT YET MANAGE TO ARRANGE SPECIAL FEATURES IN

THE CONTEXT OF THE BRITISH PACKAGE. I AM PLEASED TO SAY THAT MY

DEPARTMENT HAS SUCCEEDED IN ARRANGING UNIQUE TERMS FOR THE CARRIAGE

OF THE EQUIPMENT TO HONG KONG. I AM SURE YOU WILL AGREE THAT THE

REDUCTION OF OVER 40 PER CENT IN THESE COSTS WHICH HAS BEEN

ACHIEVED (AS INDICATED IN THE ATTACHED MATERIAL) IS HIGHLY

SATISFACTORY.

WE ALSO AGREED LAST MONTH THAT IT WOULD BE HELPFUL IF CLP STAFF

WERE TO COME TO THE UK FOR FURTHER TECHNICAL DISCUSSIONS. YOUR STAFF

HAVE HAD MOST USEFUL MEETINGS BOTH WITH THE CE GB AND THE CONTRACTORS.

IN THE LIGHT OF DISCUSSION, BOTH IN HONG KONG AND IN THE UK, WE

HAVE LISTED AND PRICED A NUMBER OF ADDITIONS TO THE SCOPE OF

EQUIPMENT SET OUT IN OUR ORIGINAL PROPOSALS. WE HAVE ALSO DESCRIBED ARRANGEMENTS WHICH ENABLE CLP/PEPCO TO EXERCISE A CHOICE OF SUPPLY ON CERTAIN DEFINED ITEMS OF EQUIPMENT. MOREVOVER, WE HAVE INDICATED

A NUMBER OF POSSIBLE DESIGN ARRANGEMENTS WITH ATTENDANT COSTS

WHICH MAY BE OF INTEREST TO YOU. ALL THE ADDITIONS TO OUR ORIGINAL

PROPOSALS ARE GIVEN IN THE ATTACHED VOLUMES.

WE ARE IN CLOSE TOUCH WITH YOUR FINANCIAL ADVISERS ON THE FEW

UNRESOLVED FINANCIAL MATTERS YOU RAISED IN HONG KONG AND THE

CEGB IS PREPARING AN ESTIMATE OF THE LIKELY COST OF THE ADDITIONAL

SERVICES YOU MAY REQUIRE FROM THEM.

I LOOK FORWARD TO DISCUSSING THESE AND OTHER MATTERS WITH YOU IN

HONG KONG. WE HAVE ARRANGED FOR THE CONTRACTORS TO BE AVAILABLE

FOR DISCUSSIONS WITH CLP/PEPCO FROM THURSDAY 8 DECEMBER AND FOR

THE REST OF THE BRITISH TEAM TO BE AVAILABLE FROM MONDAY 12 DECEMBER.

I SHOULD APPRECIATE IT IF YOU WOULD LET DEREK MARCH KNOW IF THIS IS

IN ACCORDANCE WITH YOUR WISHES. UNQUOTE

2. FREIGHT RATE IMPROVEMENTS BRING COST TO CLP/PEPCO DOWN FROM

POUNDS 9.3 MILLION TO POUNDS 5.5 MILLION FOR FIRST TWO UNITS.

BETTER DEFINITION OF HARDWARE TO BE TRANSPORTED PROVIDED SOME SAVINGS

AMINGS MTUGUT DOUBT ACHIEVED dy lidRITT'S DISCUSSIONS.

DUT MA JOD

Share This Page