RESTRICTED
4kkibu!!
RECE
10 JUL 1978
39. 5}
RED TRY
ction Teken
76
GR 330
PHER CAT A
FM BTC HONG KONG 070352Z
RESTRICTED
TO PRIORITY DO I TELNO INDUS 78 OF 7 JULY 1978
INFO D O T (FOR CRE4), F C O.
INFO SAVING PEKING.
PA
M
Sed 177
TALKS WITH CHINA LIGHT AND POWER.
BEJAMIN AND HAVELOCK LEFT LAST NIGHT AFTER THREE DAYS OF
INTENSIVE TALKS WITH CLP. BENJAMIN CARRIES A LETTER FROM KADOORIE EXPRESSING CONCERN AT THE LACK OF PROGRESS ON FORMULATING
OUR PROPOSALS FOR COUNTER TRADING WITH CHINA,
2, CONSIDERABLE PROGRESS WAS MADE ON DEFINING THE ROUTE FOR THE
EHY TRANSMISSION SYSTEM. ODELL OF BALFOUR BEATTY HAS ESTABLISHED
A GOOD WORKING RELATIONSHIP WITH STONES. WE ASSURED KADOORIE THAT
OUR PACKAGE WOULD BE SUBMITTED ON TIME. HE REMINDED US OF THE
NEED TO ENSURE THAT IT WAS INTERNATIONALLY COMPETITIVE AS HE
RECEIVED REGULAR ENQUIRIES FROM JAPANESE, ITALIAN AND FRENCH SUPPLIERS.
3. IN THE PRESENCE OF ROY SMITH, MANAGING DIRECTOR OF EASTERN
ENERGY, KADOORIE TABLED ESSO'S LETTER OF JULY 6 EXPRESSING CONCERN
ABOUT THE TIME LIMIT OF 30 NOVEMBER ON THE OPTION TO ORDER UNITS
3 AND 4 AND THE CHARGE OF POUNDS STERLING 9 MILLION PLUS FOR ECGD
FINANCING AND ESCALATION COVER. THE LETTER, OF WHICH BENJAMIN HAS A COPY, CONFIRMS THE 'RUMBLINGS FROM HOUSTON' MENTIONED IN
MY INDUS 66. WE SHALL NEED URGENT GUIDANCE.
*
4. KADOORIE MENTIONED THE POSSIBILITY OF A FUTURE LINK BETWEEN
CLP AND HONG KONG ELECTRIC TO AVOID THE NEED FOR A SECOND MAJOR
POWER STATION AND THUS SAVE THE HONG KONG CONSUMER HK DOLLARS - 4,500 MILLION. HE SAID THAT WHILE HE COULD NOT SEE A FULL MERGER DEVELOPING, HE WONDERED WHETHER THE UK'S AREA GENERATING
BOARDS MIGHT CONTRIBUTE A MODEL FOR THE DEVELOPMENT OF COMBINED
POWER GENERATION FACILITIES. HE INVITED US TO SUPPLY
CONSTRUCTIVE IDEAS. I MUST PURSUE THIS DELICATE SUBJECT FURTHER
RESTRICTED
WITH..