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Hanayom

23 Jestays

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TRED (2)

Puso (2) **

TO IMMEDIATE BTC HONG KONG TELEGRAM NO INDUS 178 OF 23 AUGUST.

FOR MARCH FROM THORNTON, EPT 1 TRANSMISSION SYSTEM/ELECTROWATT.

1. FOLLOWING YOUR CONVERSATION WITH HAVELOCK, HE AND I HAVE SPOKEN INFORMALLY TO GOLDSMITH OF ELECTROWATT ABOUT THEIR STATUS ON THE TRANSMISSION PROJECT AND THEIR LINKS IF ANY WITH BROWN BOVERI.

2. IT BECAME CLEAR THAT MY NOTE OF 17 JULY HAD MISINTERPRETED GOLDSMITH'S EARLIER REMARKS, AND THAT ELECTROWATT'S SWISS PARENT DOES NOT (REPEAT NOT) HAVE ANY CONNECTION WITH BROWN BOVERI. THIS IS THEREFORE NOT A VALID REASON TO BE WARY OF ELECTROWATT'S ENGAGEMENT BY CLP.

3. GOLDSMITH'S POSITION IN ELECTROWATT SEEMS TO HAVE SETTLED DOWN SOMEWHAT. HE IS FAIRLY CONFIDENT THAT IF ELECTROWATT DO GET THE JOB IT WILL BE DONE IN LONDON, BY HIM. HE HAS APPARENTLY REASSURED SIR LAWRENCE KADOORIE ON THIS POINT, HAVING HIMSELF TOLD CLP OF THE SWISS-INSPIRED REORGANISATION IN LONDON.

4. GOLDSMITH BELIEVES THAT ELECTROWATT HAVE IN FACT BEEN ENGAGED ON THE TRANSMISSION PROJECT, BUT COULD NOT TO HIS EVIDENT CHAGRIN FIND A LETTER SAYING SO. TO SATISFY HIMSELF, AND INCIDENTALLY US, HE WILL TELEX CLP FOR CONFIRMATION OF THE POSITION ELECTROWATT HAVE IN ANY CASE DONE CONSIDERABLE BACKGROUND WORK ALREADY.

5. PROVIDED THAT ELECTROWATT'S WORK IS TO BE DONE BY GOLDSMITH, IN LONDON, WE HERE WOULD BE QUITE CONTENT THAT THEY SHOULD BE ENGAGED BY CLP. IT IS IMPORTANT THAT GOLDSMITH SHOULD NOT DISCOVER (IF IT 18 SO) THAT OUR MISUNDERSTANDING ABOUT BROWN BOVER! HAS CAUSED CLP TO HESITATE, SINCE HIS DISCUSSION RECORDED IN MY NOTE WAS REGARDED BY HIM AS IN CONFIDENCE. WE THEREFORE SUGGEST THAT YOU SHOULD HAVE A QUIET WORD WITH STONES TO CLEAR THIS UP.

6. I REGRET ANY EMBARRASSMENT CAUSED TO YOU (OR STONES) BY THE ERROR.

7. FOR YOUR INFORMATION, AS SOON AS IT IS CONFIRMED THAT ELECTROWATT ARE ENGAGED AND THAT GOLDSMITH WILL HANDLE IT, WE PROPOSE TO LET HIM HAVE A COPY OF THE BID INFORMALLY (AND OF COURSE FORMALLY WHEN REQUESTED BY CLP), AND WITH BALFOURS AND BEI TO GIVE HIM SOME ADDITIONAL BRIEFING ON ITS CONTENT AND SOME OF THE DIFFICULTIES POSED BY THE PROJECT.

8. HAVELOCK IS ON LEAVE UNTIL 4TH SEPTEMBER.

NNNN

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