Not yet
the cases
12 Why did CLP/Exxon not put the contract to international tender? CLP/PEPCO have traditionally "bought British" and were keen to do so again provided we could offer competitive terms. The package we put forward was competitive, so independent Swiss consultants
concluded.
13 Has the EEC approved the possible subsidy of British exporters? We see no difficulty in EEC terms. We have informed the EEC
of our proposed action but have not formally sought the Commission's approval.
Awaiting UKREP'S 14
مستقل
Is HMG's action consistent with GATT?
We are confident we can satisfy our fellow members on this score.
15 Will this contract, and Drax B, make the industry viable? The needs of industry were set out in the CPRS Report. The order for Drax B is being advanced, in response, as a stop gap measure but the industry also remains in urgent need of export orders. The assistance the Government has been able to provide in the case of the CLP/PEPCO order is an example of its intention that the UK should retain a power plant industry.
•
16 What progress is being made on restructuring?
The CPRS proposals hinged upon the restructuring of the power plant industry. Good progress is being made towards the formation of a single boiler maker company but the turbine generator sector is more difficult. There is general agreement within the industry on the need for restructuring and this remains the Government's objective which it will continue to encourage and
assist.
17 What did the Hong Kong dollar proposals imply?
They would enable CLP/Exxon to minimise their foreign exchange risk. However CLP/Exxon have decided not to use this facility because they could not reach agreement with the Hong Kong banking community on appropriate banking fees.