CONFIDENTIAL #3
6
If the three Drax 'B' 660 mw units were commissioned
at Tap Shek Kok in 1983/84/85, Sir Lawrence said
that CLP would be in a position to export to China
from 1,000 to 1,600 mw on a continuous basis.
He said this would have a significant impact on
China's power system, since it would double the
present capacity of Kwangtung Province.
12.
In support of his proposal, Sir Lawrence
postulated that if the transfer of the Drax 'B'
units (or some equivalent units) to Tap Shek Kok
were presented to the Chinese as a gesture
towards their 'Four Modernisations' programme, it
would assist in cementing the good relationship
existing between Hong Kong and China; and that at
the same time UK industry would be benefitted in
a number of ways.
13.
As regards financial arrangements,
Sir Lawrence suggested that the security of
Hong Kong vis-a-vis China would make the financial
risk attached to his proposal more acceptable
than the risk that would be involved in setting
up a power station in China. He recognised that
the cost involved in his proposal was considerable,
but he said preliminary feelers had indicated
that finance would be available against a long-term
supply agreement guaranteed by the Chinese
Government.