CONFIDENTIAL
Impressions and Comments Received During both Formal and Informal Discussions
(27th to 30th June, 1980)
1.
KEC, the Provincial Government, and the Central Government, were supportive of this project and they are anxious for CLP's participation.
2.
Mr. Chen Gang, in the presence of Mr. W.F. Stones and Mr. S.K.L. Poon, was asked directly why KEC wished to have CLP's equity participation. The reply was as follows :
a.
D.
KEC wanted CLP's Management participation in the Joint Venture Company.
If CLP were putting in equity, the initial investment from KEC would be less and they recognised that by doing so part of the profit from the power station would go external to KEC.
3.
Over lunch, Mr. Chen Gang stated that KEC would encourage CLP to obtain UK support for this project and accepted the fact that this may mean buying some UK plant provided. that it is near enough competitive.
KEC realise that it is important for the UK Government to support CLP in the same way as KEC is supported by the PRC Government.
See paragraph 17 of the minutes.
Mention was made of GEC's participation in Kori.
4.
Mr. Ding could not understand why CLP, the biggest company in Hong Kong, found difficulties in taking a risk regarding the equity of the Joint Venture. If this was so, then any external help must come from a larger organisation than CLP, and this he assumed could be the UK Government.
wfs:yy 2.7.1980