I agree that it would be consistent with what Ministers decided earlier this year about taking steps to encourage power plant exports to make available CEGB's services at no cost to the buyer and to provide cost escalation cover on the basis suggested. I should make it clear that I regard the £4 5 million at 1977 prices in respect of the CEGB's services as the maximum public sector aid which should be provided for this project, apart from the extra liabilities which ECGD will be assuming.
I am sending copies of this letter to the Prime Minister, Tony Benn, Edmund Dell and David Owen.
Yours sincerely
Lan Smitt
JOEL BARNETT
[Approved by the Chief Secretary
and signed in his absence]