CONFIDENTIAL #3
9
to China should be a commercial
decision for CLP to take,
the formation of a separate company for the
generation and supply of electricity to China would seem, on the face of it at least, to be the most
appropriate way of proceeding.
19.
ESB saw a number of practical difficulties (none of which was insuperable), and other problems would doubtless arise if the issue was gone into in
more detail with CLP. In the light of the Varley group's reported private reactions (para 16(b) above), FS has written to Sir Lawrence saying that
no further action will be taken until we hear
again from CLP.
20.
Unless CLP can negotiate a deal over
the Drax 'B' sets there is no way in which CLP
would be able to supply China from a new power station at the bulk tariff rate CLP charges its
consumers in Hong Kong. For the latter involves
the use of CLP's present equipment for which capital
investment per kw was about a quarter of the
investment for the plant they are now installing
at Tap Shek Kok (station 'A'), such has been the
increase in prices.
21.
(ii) A site
The Environment Branch sees no overwhelming
land use objections to the idea of three power
stations being sited at Tap Shek Kok. To avoid using
up scarce land required for other polluting
: