SRS 445
CONFIDENTIAL
CONFIDENTIAL
HONG KONG 308455Z DEC 78
TO ROUTINE F C O
PAPER
TELEGRAM NUMBER 1503 OF 3LEMBER
INFO PEKING
ELECTRICITY SUPPLY TO CHINA.
SUPPLY
املا
Akk 164/i
RECITALU NI REGSTRY NO. 51
00 GC 1973
DARK OFFICER
INDEX
REGISTRY Action Taken
No
1. CHINA LIGHT AND POWER NEGOTIATIONS FOR A SUPPLY OF ELECTRICITY
TO CHINA ARE NOW FAIRLY ADVANCED. A CLP TEAM HAS BEEN IN CANTON, AND A TEAM FROM CANTON WILL ARRIVE HERE ON 6 JANUARY. THE IMMEDIATE PROPOSAL IS A SUPPLY OF 50 MVA AT 110 KV TO PO ON, ABOUT 7 KMS NORTH OF THE FRONTIER.
2.FROM NCNA, LI CHIANG, KADGORIE, AND OTHER SOURCES, IT IS
CLEAR THAT THE PURPOSE IS TO PROVIDE POWER FOR INDUSTRIALISATION
BASED ON HONG KONG INVESTMENT.
3. PRESUMABLY IF THE SCHEME IS SUCCESSFUL THE AMOUNT OF POWER
WOULD HAVE TO BE SUBSTANTIALLY INCREASED.
ON 4. YESTERDAY KADOORIE ASKED ME WHETHER I SAW OBJECTION ON THE GROUNDS THAT:-
A. THE DEVELOPMENT OF SUCH INDUSTRIALISATION WOULD DRAW OFF
CAPACITY FROM HONG KONG AND BE COMPETITIVE WITH IT.
B. THE INVOLVEMENT OF CHINA IN THE SENSITIVE ISSUE OF ELECTRICITY RATE INCREASES IN HONG KONG WOULD BE UNACCEPTABLE (UNDER THE SCHEME OF CONTROL INCREASE MUST BE APPROVED BY THE GOVERNMENT). C. THE ESTABLISHMENT IN CHINA GF HONG KONG-OWNED PROPERTY (IT IS PROPOSED THAT CLP WILL OWN THE POWER LINES ETC), WITH THE ATTENDANT NEED TO MAINTAIN IT WOULD BE AN EXCESSIVE HOSTAGE TO
FORTUNE.
5. I SAID THAT, SPEAKING PERSONALLY, (A) SHOULD BE DISREGARDED.
ON THE ONE HAND POWER COMPANIES WERE THERE TO SELL ELECTRICITY, AND IF THEY BELIEVED THEY HAD A SOUND CUSTOMER IN CHINA THEY SHOULD
SUPPLY. THE PROCESS OF DISINVESTMENT IN HONG KONG TO LOWER COST PRODUCING COUNTRIES AND REINVESTMENT IN HONG KONG IN HIGHER TECHNOLOGY HAD BEEN GOING ON OVER MANY YEARS AND THIS WAS JUST
CONFIDENTIAL
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