4. STONES ACCEPTED THAT KEC/CLP HAD TO BE SATISFIED ON PRICE
COMPETITIVENESS BUT FELT THAT PROVIDED THE JOING TEAM WAS
SATISFIED ON TECHNICAL PERFORMANCE THE PRICE COULD BE
NEGOTIATED TAKING INTO ACCOUNT THE GENERAL UK SUPPORT
FOR THE PROJECT. HE SUGGESTED THAT IT MIGHT BE POSSIBLE TO USE SWISS OR AMERICAN CONSULTANTS TO GIVE KEC/CLP AN
INDICATION OF WORLD PRICES FOR ALL PLANT OTHER THAN THE NUCLEAR ISLAND. CHEN GANG AGREED TO THIS METHOD OF
CONTRACT STRATEGY FOR FIXING A GEC PRICE.
5. STONES THEN SUGGESTED THAT KEC MIGHT AVOID TENDERING PROCEDURES FOR THE TURBINE GENERATORS AND AUXILIARY PLANT
SINCE THEY COULD NOT ACCURATELY EVALUATE THE COST OF MANAGEMENT AND OPERATIONAL ASSISTANCE AVAILABLE FROM THE U K. CHEN GANG AGREED.
6. STONES SUMMPED UP BY SUGGESTING THAT IF KEC/CLP WERE BOTH SATISFIED WITH THEIR INTERROGATION OF GEC'S TECHNICAL CAPABILITY
AND MACHINE PERFORMANCE, GEC SHOULD BE ASKED TO PROVIDE A PRICE QUOTATION ON THE BASIS OF WHICH CLP/KEC COULD NEGOTIATE USING A
COMPARISON METHOD WITH THE HELP OF INTERNATIONAL CONSULTANTS.
STONES ASKED WHETHER HE MIGHT ASSUME THAT KEC HAD NO OBJECTION
TO THIS APPROACH. CHEN GANG SAID THERE WAS NO OBJECTION AND THAT
HE SUPPORTED THE IDEA. STONES ENDED BY EXPLAINING THAT HE WOULD
SHORTLY BE GOING TO THE U.K. TO DISCUSS SUPPORT FOR THE PROJECT AND THE RESOURCES AND EXPERTISE WHICH HE BELIEVED WERE REQUIRED. HE DID NOT WISH TO RAISE ANY QUESTION IN THE U.K. WHICH WOULD NOT
BE ACCEPTABLE THE CHEN GANG OR MIGHT CAUSE HIM EMBARRASSMENT. CHEN
GANG THANKED STONES FOR HIS CONSIDERATION AND SAID IT WAS VERY IMPORTANT THAT HE SHOULD GO TO THE U.K. AS SOON AS POSSIBLE FOR SUCH DISCUSSIONS.
7. STONES WILL NOW EMBODY THE ABOVE INFORMAL EXCHANGES IN A PROPOSAL FOR CONTRACT STRATEGY TO BE PRESENTED TO THE COMMITTEE. HE HAS ARRANGED HIS HOLIDAY IN ORDER TO BE AVAILABLE IN HONG KONG DURING LORD CARRINGTON'S BRIEF VISIT AND WOULD LIKE TO HAVE DETAILED DISCUSSIONS WITH THE DEPARTMENT OF INDUSTRY IN LONDON IN THE WEEK BEGINNING OCTOBER 13.
8. F.C.0. PLEASE ADVANCE TO DOI, DOT AND DEPT OF ENERGY.
MARCH
WHITED JNU
HK YGD
FED
TRLED
MR P MOBELLY
MA DONALD
ADDITIONAL DIST:
GUANGDONG NUCLEARL
COPIES TO:
DIENERGY
CONFIDENTIAL
2
DOI
DOT