CONFIDENTIAL # 3B
17.
8
(b) ` privately, the group's reaction was
that the proposal was probably a non-
starter because :
(i) the plant for Drax 'B' had been
built to operate in a cold climate;
it was needed to use UK-produced
coal;
(ii)
(iii) they were rather sceptical about
CLP's prognostications of the
growth in demand from China, and
about China's willingness to have
this demand met from Hong Kong.
Comment by Economic Services Branch
Leaving aside the political considerations,
there are two aspects to Sir Lawrence's proposal of
concern to the HK Government :
(i) the formation of a separate company
(ii)
outside the Scheme of Control to supply
China with 200 250 mw; and
the possibility of making additional
land available at Tap Shek Kok for
18:
(a)
(b)
this purpose.
i) A separate company
Given
Sir Lawrence's objective, on our
insistence, that Hong Kong consumers
should not subsidise sales of electricity
to China;
the decision to enter into an agreement
to supply large quantities of electricity