(
Connaught Hotel,
Carlos Place,
London W.1.
;
9th August, 1978
Dear Prime Minister,
I feel I cannot leave England without mentioning how "Project 77" is developing. Since we last met I have spent some time in China, after an absence of over 30 years. I was surprised and pleased at the reception I got, particularly considering that I am an old China hand. Conversations with Chinese officials lead me to believe that the contacts formed can promote considerable "compensatory" business between China and the United Kingdom. I hope this may be so.
During my visit to London I have met Mr. Alan Williams Mr. Edmund Dell and Mr. Eric Varley, not forgetting, of course, John Lippitt who has been in on all negotiations since the beginning. It is pleasing to report that excellent progress has been made.
The present position is that we are expecting to receive an offer of a 400 KV transmission system towards the end of August. If, as I hope, this offer can be shown to be as competitive as the offer for the generating facilities already ordered, I have every reason to believe this substantial order will be placed in, the UK.
It is most important that the offer for this transmission system should be seen to be fully competitive in terms of price, technical competence and finance, especially the security requirements. In this respect I would particularly appreciate your support since I am aware that my Board will not accept any more onerous conditions as to security than those granted by ECGD in the case of the loan for the generating plant.
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