CONFIDENTIAL
also at : HE KIGHTI
Mr Morrice
Mr Cli
TO CLIX 13/3
R =
Ev
320
S L CHEN ESQ OBE
シ
Reference..
160/1
HKKIE
RECEIVED W
INELX
18 MADDES
*
Taken
1. Mr Morrice and I met Mr Chen this morningHe mentioned several points which are of interest:
PA
AW 2013 Ai 20
201
(a) Coal from China for the new Lamma Island Generator:
Mr Chen, who is the General Manager of the Hong Kong Electric Co., last year negotiated a long-term contract for the supply of coal with the Chinese authorities. He suggested, "wearing his political cap", that the contract should be for 20 years from 1979. The Chinese clearly realised what he was up to and he had settled for 12 years.
(b) The Guangdong Nuclear Project:
Mr Chen has been in direct contact with the Guangdong Provincial authorities on this but obviously does not know the extent or details of China Light and Power's involvement. He stressed that any arrangement for the supply of nuclear-generated electricity to Hong Kong should be with both electricity com- panies and obviously does not want to be left out. He also pointed out that neither company would want to buy electricity from China unless either it was very cheap or they had a finan- cial stake in the nuclear power station; this is because both companies' maximum profits permitted by the Hong Kong Government are a fixed percentage of the capital value of their employed assets. Most significantly Mr Chen said that he had been told by Westinghouse that the Chinese had recently cancelled their provisional contract with the French to buy two nuclear power units; Westinghouse are of course the owners of the design of the French units. (The source of this information needs to be protected.)
CODE 18-77
14 March 1980
Mr Chem
Jrikian
P J Williamson
Hong Kong and General Department
it
very
chmont Chat
a very
plan & One Commugdung auchinition to the me of Biritul equipment in the project. He been very strongly
that
any
arrangement between Comangchang and thinly way simed be at Jovernmental level,
2. On wood, the chem said that his contruct with as Chinese regimed
CONFIDENTIAL