DEPARTMENT OF TRADE
1 VICTORIA STREET LONDON SWÍH OET
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J Mills Esq
Department of Industry Millbank Tower
London SWLP 4QU
Dear John,
Telephone 01-215 787/7
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as for pp
RECEIVED A REGARY NO. 514 as
2.9 SEP 1988
DESK OF
From the Secretary of Staté
INDEX
PA
! REGISTRY
Action Taken
N thoupson 822714
23 September 1977
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MISAD
PS
PS/LGROBEITTS Pslevs MR.CozTAZZI
MR. MURRAY
HONG KONG POWER STATION PROJECT
FED
TRRO.
My Secretary of State is glad to have been sent a copy of your Minister's letter of 19 September to the Chief Secretary about the financing of the Hong Kong power station project. We understand that there have now been some changes in the scope of the proposed contract, and that the figures will be affected as a result, but in any case there is one point which it will be necessary to clarify, irrespective of the figures.
Mr William's letter proposes that your Department should meet part of the ECGD premium by way of a public sector transfer. So long as ECGD received the appropriate premium from the Company, they should not be exposed to international difficulties on grounds of providing subsidised cover, but the position could be rather differ- ent if the payment were made directly and overtly from your Depart- ment to ECGD. We imagine that this is not in fact intended, but we should be glad to know how it is proposed to make and account for the payment.
I am sending copies of this to the Private Secretaries to the Prime Minister, the Foreign Secretary, the Secretary of State for Energy and the Chief Secretary.
Yours sincerely,
Martyn Jaker
M M BAKER
Private Secretary
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