Madi
My Retai
65
P.A.
GR 300
CONFIDENTIAL
CONFIDENTIAL
FM 3.T.C. HONG KONG 22100ØZ JUL
HKK 166/1
TO IMMEDIATE FOREIGN AND COMMONWEALTH OFFICEIVED IN REGISTRY
TELEGRAM NUMBER 99 OF 22 JULY, 1980
INFO ROUTINE PEKING.
(W)
MY TELNO BTC 97: GUANGDONG NUCLEAR PROJECT
2 5 JUL 1980
DESK OFFICER
INDEX
C
B.
PA
AN2517
1. DUE TO A TYPHOON, OFFICES IN HONG KONG ARE CLOSED TODAY (TUESDAY) BUT KADOORIE AND STONES HAVE JUST TELEPHONED ME TO REPORT PROGRESS AT THIS MORNING'S MEETING OF THE KEC/CLP EXECUTIVE MEETINGS WHICH WERE HELD AS PLANNED.
2. KADOORIE SAID THERE HAD BEEN BASIC AGREEMENT ON THE NOTES TABLED WITH HIS AGENDA. HE WAS CONVINCED THAT CHEN GANG'S EARLIER EXCHANGES WITH STONES REPRESENTED CHINESE THINKING
AND THEAT THEY WERE NOW WELL AWARE OF THE POLITICAL SIGNIFICANCE OF THE SIZE AND TIMESCALE OF THE PROJECT. HE STRESSED FOUR POINTS:- (A) IN REPLY TO A DIRECT QUESTION WHETHER THE KEC WISHED HIM TO SEEK HMG'S INVOLVEMENT, SHIH CHAO-HSIANG HAD SAID THAT THEY WOULD WELCOME PARTICIPATION BY HMG AND ALSO BY H.K. GOVERNMENT: (B) SHIH ACCEPTED THAT THERE SHOULD BE A PREFERENCE FOR BRITISH
EQUIPMENT PROVIDED THAT IT WAS COMPETITIVE. THE KEC APPEAR TO HAVE RECOGNISED THE SIGNIFICANCE OF INSISTENCE ON BRITISH SAFETY STANDARDS:
(C) KEC HAD AGREED TO THE SALE OF POWER TO CLP FOR A PERIOD OF 25 YEARS FROM THE COMMISSIONING DATE AND THAT OTHER CONTRACTS COULD OPERATE FOR AS LONG AS 20 YEARS FROM THAT DATE: (D) SHIH HAD SAID THAT OTHERS HAD APPROACHED KEC ABOUT FINANCE
FOR THE PROJECT BUT THEY WISHED TO DEAL DIRECTLY WITH KADOORIE AND CLP. KADOORIE THEREFORE BELIEVES U.K. INTERESTS (1. AND OTHERS SUCH AS GEC) SHOULD TAKE UP THE MAJORITY SHARE
SHARE HMG
HOLDING OF THE U.S. 80 - 100 MILLION DOLLAR EQUITY FOR THE PROPOSED H.K. NUCLEAR INVESTMENT COMPANY (HKNIC) IN ORDER TO JOIN CLP IN INFLUENCING MANAGEMENT AND PURCHASING POLICY BUT THAT CARE IS NEEDED TO PRESERVE CLP'S POSITION AS THE PRINCIPAL NEGOTIATOR WITH KEC. ANY INPUT TO KEC BY HMG MUST BE CHANNELLED THROUGH KADOORIE AND HIS TEAM.
3. IF THE STORM ABATES, I HOPE TO SEE DR. MARSHALL THIS EVENING TO CETAIN HIS COMMENTS ON THE DAY'S PROCEEDINGS.
4. F.C.0. PLEASE ADVANCE COPIES TO DOI, COPY TO DOT AND D/EN.
MARCH
FILES
[ADVANCED AS REQUESTED]
ADDITIONAL DISTN.
JNU
TRED
GUANGDONG NUCLEAR
HK & GD
FED
MR PH MOBERLY MR DONALD
CONFIDENTIAL
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