amount equal to 100 per cent of the value of the UK goods and services. The offer is unique in the way that CLP/PEPCO's exchange risk is almost eliminated by the use of Hong Kong dollars and in the fact that no negotiation or management fees are charged. In addition the benefits of favourable export credit terms will be incorporated in a scheme which would take advantage, on your behalf, of the relative strength of
the Hong Kong dollar in international markets and which would substantially reduce the payment of commitment commission.
Discussions with CLP/PEPCO
*
I am available to lead a team comprising Government officials and leading representatives of the companies involved for discussions on the principles of our proposals as soon as you have had an opportunity of studying them. I hope that you will consider a visit in mid-October appropriate, and I suggest that you let Derek March, the Senior British Trade Commissioner, know when a visit would be welcome to you. Following this visit, the companies would be delighted to arrange discussions on the technical details at any time convenient to you.
I hope that these proposals will form the basis of successful discussions. I should emphasise that the Government would be prepared to develop similar proposals for the later stages of China Light and Power's development programme.
A J LIPPITT
Deputy Secretary
Department of Industry