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5. The joint CLP/KEC study team was requested to complete its work by the end of September, but it now seems unlikely
that this can be achieved much before the end of 1980. It is
now probable that the power station will be of 2 x 900 MW
turbine sets, supplied from Pressurised Water Reactors. There will be associated transmission lines and a pumped storage scheme. Total project costs are estimated in the region of US $4000m with the value of UK hardware some $1000m.
6. Sir Lawrence Kadoorie, Chairman of CLP, was in the UK
during August, when he called upon the Prime Minister, Secretary of State for Industry and Lord Privy Seal and gave a report of his views on current progress. Sir Lawrence received encouragement for his efforts on the project though he was told that Ministers would have to form views on specific issues before the Foreign Secretary's visit to China. The Guangdong authorities and hence no doubt Peking are aware of Sir Lawrence Kadoorie's Ministerial
meetings and would expect the Foreign Secretary to make a statement during his visit to China at the beginning of October. KEC have also specifically asked for a statement of HMG's position on the project and officials have indicated that they will hope to make this to the October KEC/CLP Executive Committee meeting. If HMG and the Foreign Secretary in particular failed to give at least general assurances, it might be taken by the Chinese as a lack of good faith on the part of HMG with political implications and could well erode the favourable position the UK has now established on this project.
General Assessment
7. A successful conclusion to this project would have considerable political and commercial benefits. Chinese commitment to the project provided the terms are right is no longer at issue.
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A striking opportunity therefore exists. In purely commercial terms it could be the biggest Sino/British venture at least since
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