DESKBY 162922Z
CYPHER CAT A
FM B T C HONG KONG 163756Z
CONFIDENTIAL
DESKBY 160929 Z
[T+2 Doi]
HK SGD (2) TRE)
INDEX
to
#54
HKK 16u|.|.
JAN 1978
SK OFFICES
Acro
૮
(2)
No
TO IMMEDIATE DO I TELNO INDUS 11 OF 16 JANUARY 1978
AND SAVING TO PEKING.
13
MIPT.
HONG KONG POWER STATION PUBLICITY.
FOLLOWING IS CLEAN DRAFT OF SIR LAWRENCE KADOORIE'S STATEMENT AS IT WILL BE RELEASED TO THE PRESS AT 1700 ON THURSDAY 19 JANUARY.
BEGINS
CHINA LIGHT TO BUY BRITISH POWER EQUIPMENT
CLP CHAIRMAN DESCRIBES 10 MONTHS OF NEGOTIATIONS.
1. CHINA LIGHT INTENDS TO BUY BRITISH EQUIPMENT FOR ITS NEW POWER STATION. THE CHAIRMAN, SIR LAWRENCE KADOORIE, TODAY SIAD THAT THE COMPANY HAS SIGNED A POUNDS STERLING 100 MILLION LETTER OF INTENT WITH A BRITISH CONSORTIUM LED BY THE GENERAL ELECTRIC COMPANY LIMITED. THE SUM OF POUNDS STERLING 100 MILLION REPRESENTS THE FOB PRICE OF THE FIRST TWO GENERATING SETS AND THE FIRST INVESTMENT IN A PROGRAMME WHICH WILL LAST FOR SEVERAL YEARS AND TOTAL MORE THAN DOLLARS 8000 MILLION (OR POUNDS STERLING 1000 MILLION STERLING) INCLUDING WORK DONE IN HONG KONG. THE POWER STATION WILL BE OPERATED BY A NEW COMPANY - KOWLOON ELECTRICITY SUPPLY COMPANY LIMITED (KESCO) - FORMED BY CHINA LIGHT AND POWER COMPANY, LIMITED AND ESSO. SIR LAWRENCE DESCRIBED THE NEGOTIATIONS AND THE EVALUATIONS WHICH HAD LED TO THE DECISIO,. HE SAID : **THE DEVELOPMENT OF A PROJECT FOR THE BUILDING OF THE NEW POWER STATION AND THE ASSOCIATED TRANSMISSION NETWORK HAS BEEN A DIFFICULT AND COMPLICATED TASK.
2. IT HAS BEEN NECESSARY TO AGREE ON A PROGRAMME INVOLVING MANY DIFFERENT ACTIVITIES WHICH INCLUDE APPOINTING A TEAM OF EXPERIENCED ENGINEERS TO DEFINE THE POWER SYSTEM REQUIREMENTS AND TO ASCERTAIN THAT THESE REQUIREMENTS WILL BE CARRIED CUT TO THE SATISFACTION OF OUR COMPANIES, OUR CONSUMERS AND THE PUBLIC.
3. ''THE DEPARTMENT OF INDUSTRY IN THE UNITED KINGDOM, IN AN INNO-