HK K16611 RECEIVED & PROANTRY NO. ST - 5 AUG 1980
DEK DEMCER
INDEX
Mr Willanson PA
DEPARTMENT .
ASHDOWN HOUSE
123 VICTORIA STREET LONDON SWIE ORB
PA
REGISTRY Action Taken
Telephone
ли! дь 8
P. Mountfield Esq.,
HM Treasury,
Parliament Street, LONDON SW1
Dear Mr Mountfuld
RY
Direct Line 01-212 Switchboard 01-212 7676
3/8.
1st August, 1980
Copy to HKD General Deft. сору
M.B
44/8
Pa
WP.
HONG KONG: CASTLE PEAK "B" POWER STATION
Ken Cotterill's letter to you of 25 July raises a number of important issues which we need to consider in the near future. I recognise the difficulty in which ECGD now find themselves as a result of their high exposure to risk in Hong Kong. The main problem is of course that large power stations are extremely expensive items, and the placing of two such contracts with any developing country would be likely to give rise to precisely this type of feeling within ECGD that too many eggs may be in the same
basket.
As you know, such projects are hard to find, and we are very fortunate to have this opportunity to try for a second order from the same customer. The Castle Peak "A" Station contract has been exceptionally valuable for the UK power plant industry, and the "B" station contract is likely to bring similar benefits.
In addition, Hong Kong is a market in which we would like to maintain a good position, particularly with regard to other possibilities over the border in China.
I think that we will probably need to put a paper to Ministers in September or October, but the timing of it will be clearer when CLP and Exxon have completed their feasibility study on the project. Perhaps I should arrange a meeting in early September at which other recipients of this letter can feed in their views.
Ruta Bros
PP
A.G.MANZIE
cc J Caines
C Benjamin
DOT' DOT
N Hoult
O DA
M Haworth
MOD
K Cotterill
ECGD
JC Priston
DOT
J Anderson
BOE
- Blick
FCO
A J Havelock DOI
D M March HONG ONG
Muthr ni
DOT