GR
285
YPHER/CAT A.
FM BTC HONG KONG 260543Z
UNCLASSIFIED
COMMERCIAL-IN-CONFIDENCE
HKKIGH!.
PA
No of A аб
TO ROUTINE E.C.G.D TELNO.EXCED 3 OF 6 FEBRUARY 78.
N/R)
YOUR EXCED 2: DEACONS AND CLP.
43
1. IN THE ABSENCE OF ANY BACKGROUND TO DEACON'S APPOINTMENT AS ECGD'S SOLICITORS, I HAVE HAD TO DISCUSS THE POTENTIAL CLASH OF INTERESTS WITH JOHN WIMBUSH, WHO WILL SHORTLY TAKE OVER FROM BILL TURNBULL AS SENIOR PARTNER. DEACONS DO NOT REPEAT NOT ACT FOR THE PURCHASER OF THE NEW POWER STATION WHO ARE THE KOWLOON ELECTRICITY SUPPLY COMPANY (KESCO). KESCO'S LAWYERS ARE LO AND 1.0. HOWEVER, DEACONS HAVE ALWAYS REPRESENTED ESSO WHO WILL, OF COURSE, HOLD SIXTY PERCENT OF THE EQUITY IN KESCO. THEY REPRESENT CLP IN DAY TO DAY TRANSACTIONS BUT NOT IN RESPECT OF THE NEW POWER STATION. THEY ALSO REPRESENT PENINSULA ELECTRIC POWER COMPANY (PEPCO) WHO ARE THE GENERATING COMPANY AT TSING YI OWNED
JOINTLY BY CLP AND ESSO.
2. WIMBUSH SAID THAT IT WOULD BE A SIMPLE MATTER FOR HIM TO APPOINT ONE PARTNER TO ADVISE ECGD AND TO GIVE THEM HIS PERSONAL
ATTENTION THROUGHOUT THE CASE. BUT HE WOULD REQUIRE THE CONSENT
HE SAID THAT LAWYERS IN HONG
OF ESSO TO SUCH AN ARRANGEMENT.
KONG OFTEN FIND THEMSELVES REPRESENTING TWO PARTIES WHO COME INTO NEGOTIATION. THE PRACTICE IS ACCEPTED BECAUSE THERE IS A
RESTRICTED NUMBER OF FIRMS WITH PARTICULAR EXPERTISE.
3. GRATEFUL IF YOU WOULD LET ME KNOW WHETHER YOU WOULD WISH DEACONS TO ACT FOR YOU PROVIDED THAT ESSO'S CONCURRENCE CAN BE OBTAINED (I DOUBT WHETHER THEY WILL OBJECT). IT OCCURS TO ME THAT SIMILAR POTENTIAL CLASH MUST HAVE BEEN ACCEPTED IN 1964
WHEN GEC SOLD THE TSING YI POWER STATION TO PEPCO.
MARCH EXCED
DISTRIBUTION:
HK & G D