財政司辦公廳

Our ref: CR 4/4576/77 II

Your ref: MA 42/78/L.94/LK

Annex A

FINANCIAL SECRETARY'S OFFICE.

THE SECRETARIAT.

!

HONG KONG,

2nd November 1978

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I explained to you and Peter Williams when we met on 13th October last that Executive Council, in “advising in favour of the granting of a site on Lamma

Island for Hong Kong Electric and at Tap Shek Kok for China Light, were most concerned - indeed, insistent that there should be an inter-connection between your two companies by 1982 (that is to say, the year when the first installations at these new sites come on stream: 1 x 250 MW on Lamma and 1 x 350 MW at Tap Shek Kok). They also expressed the view that further installations beyond those to which you are now committed, and preferably beyond those to be brought on stream by 1982, should be in accordance with an integrated investment programme.

2.

Quite properly, from a procedural point of view, Executive Council did not make their advice as regards land grants contingent upon inter-connection and an integrated investment programme.

But Members were, understandably, insistent that no effort should be spared to ensure that the very considerable savings to be achieved from system integration should be realised.

3. I think the three of us were agreed that inter- connection was logical and feasible and that from it, an integrated investment programme would evolve quite naturally in the future and perhaps in the early rather than the mid-1980s. You and Peter Williams also said that inter-connection was agreeable to Hong Kong Electric and China Light and Power, although you did make the point that you would have to obtain, in due course, the concurrence of your partners in PEPCO and KESCO.

4. The question we discussed at some length was how we could best carry forward this understanding in principle now reached between us so that inter-connection can be a reality by 1982. I think the three of us were agreed:

Sir Lawrence Kadoorie, C.B.E., J.P.,

St. George's Building,

Hong Kong.

/(a).....

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