for
256
BTC HONG HONG
GR 500
DESKBY 14010OZ
CYPHER CAT A
FM DTI 131624Z
CONFIDENTIAL
DESKBY 14010OZ
HKK
اليمار
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in The
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HK • GD
See Q41
ملار
NO DISTRIBUTION
Sea
1
TO IMMEDIATE BTC HONG KONG TEL NO INDUS 197 OF 13 SEPTEMBER.
FOR MARCH FROM THORNTON
TRANSMISSION SYSTEM: PRICE BREAKDOWN
1. WE MET WITH BALFOURS, BEI/CEGB AND LAZARDS ON MONDAY 11TH, AND WITH LIPPITT YESTERDAY, TO DISCUSS CLP'S REQUEST FOR A PRICE BREAKDOWN. WHILE HAVELOCK WISHES TO SEE STONES (TOMORROW, 14TH) BEFORE GIVING A RESPONSE TO CLP, YOU WILL WISH YOURSELF TO HAVE
ADVANCE KNOWLEDGE OF OUR CONCLUSIONS.
2. AS WE ALL PREDICTED, WE SHALL BE FIRM THAT THE PRICE IS A
PACKAGE PRICE AND CANNOT BE BROKEN. IN THE LAST EVENT, LIPPITT
WOULD BE READY TO WRITE TO KADOORIE TO THIS EFFECT.
•
3. HOWEVER, WE RECOGNISE THE NEED TO BE HELPFUL, IF AT ALL POSSIBLE IN RESPONSE EXCLAMATION MARK WE THEREFORE INTEND
THAT, TAKING BARRETT'S BREAKDOWN AS A STARTING POSITION, WE SHOULD PROVIDE AN AIDE MEMOIRE/INDEX EXPLAINING WHERE IN THE BID CLP/ELECT- ROWATT CAN FIND INFORMATION RELATING TO EG INSURANCE, FREIGHT, CONTENT OF PROVISIONAL SUMS ETC. PARA 3(C) OF MY INDUS 193 REFERS.
4. FOLLOWING ARE EXTRACTS. FROM MINUTES OF MONDAY'S MEETING
REPORTING MACDONALD'S VIEWS BASED ON EXPERIENCE ON UNITS 1 AND 2:-
BEGINS
3 MR MACDONALD REPORTED THAT WHEN THE DOI HAD PUT FORWARD ITS PROPOSALS FOR UNITS 1 AND 2 THERE HAD BEEN TWO FACKAGES: THE FIRST
FOR UNITS 1 AND 2 THEMSELVES WORTH £100M AND THE SECOND FOR TWO
GAS TURBINES WORTH SOME £8M. CLP HAD TRIED VERY HARD TO GET A PRICE BREAKDOWN FOR THE POWER STATION PACKAGE BUT THE DOI HAD RESISTED, ARGUING THAT, AT SIR LAWRENCE KADOORIE'S REQUEST, HMG HAD PUT TOGETHER A SPECIAL PACKAGE MUST THEREFORE BE TREATED AS A UNIT. AT A LATE STAGE DO1 HAD SEPARATED CUT THE PRICES FOR SPARES AND HAD SPLIT THE OVERALL PACKAGE INTO 8 OR 9 SEPARATE SMALLER PACKAGES - FOR FCED COVER AND COST-ESCALATION INSURANCE. BUT PRICES FOR THESE