SECRETARY OF STATE'S VISIT TO HONG KONG

10 8/1

BRIEF NO

POWER STATION DEVELOPMENTS: MEETING WITH SIR LAWRENCE KADOORIE

LINE TO TAKE

(a)

Thank Sir Lawrence Kadoorie for his help over the contracts which GEC, Balfour Beatty and others have won for 4 x 350MW generating sets, a transmission system and 6 gas turbines for the Castle Peak A Power Station - total value £350m.

(b) Express hope that Sir Lawrence Kadoorie's support will continue as Castle Peak is further developed.

(c) If Sir Lawrence Kadoorie raises project for a nuclear power station in Guangdong:

i)

ii)

iii)

agree to pass down to officials any points about

UK representation on the Working Group set up by

China Light and Power (Sir Lawrence Kadoorie's company) and the Guangdong authorities to consider the feasibility of the project;

take note of any points made on HMG's attitude eg to safeguard arrangements for nuclear material;

note the limits set by Hong Kong's conclusion that it would be politically unacceptable directly to use the Chinese desire to find the foreign exchange cost of any nuclear power station by the sale of electricity to Hong Kong to bargain for UK suppliers; but to express the hope that Sir Lawrence Kadoorie will continue to give as much help as he can to those suppliers.

OPG

January 1980

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