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RECEIVED MY NO. 51 1 0 JUN 1981
MEETING BETWEEN
CONFIDENTIAL
Original at: HICK 164 |
This Copy for:
Information only / Attion on PARSYED REGISTRY HAL KI
17 MAR 1981
DESK OFFICER
INDEX
31
8A,
PA
REGNIRY Action Tek
CRETARY OF STATE FOR INDUSTRY AND
ken11 MARCH 1981
OFECER
THE GOVERNOR OF HONG
INDEX
Present
10%
The Rt Hon Sir Keith Joseph BT MP
Mr Kenneth Baker MP
Mr David Young
Mr J H M Solomon
Sir Murray MacLehose CBE KCMG KCVO Mr W Dorward OBE Mr R D Clift
CASTLE PEAK 'B' POWER STATION
1.
Sir M MacLehose said that he understood that there was trouble over the negotiations for the power station. Sir Keith Joseph said that this was not a definitive trouble. They would still try to secure the contract. Sir M MacLehose said that the broad picture was that if Consultants advisedthe UK bid was not competitive, the customer would have to go to international tender. The contract would have to be signed this Autumn. The Hong Kong Government would have to support the customer on this because of the need to get new power on stream without delay. If the negotiations failed because the UK changed its mind at the last minute, Sir Lawrence Kadoorie could not continue to argue that a negotiation procedure should be used for the Guangdong Nuclear Power Station. He would not be able to argue for use of British equipment in that project. Sir Keith Joseph said that the problem was that subsidy for one project on the grounds that it would affect a second project would in fact lead to further subsidies for the later contracts. The total sum involved was very large. Sir M MacLehose said that he understood this but the efforts of many people to promote a 'buy British' policy in Hong Kong were at stake. If this contract went wrong purchases of Britishequipment for major contracts, eg the Mass Transit Railway extension, would stop. He wondered whether he should write to the Prime Minister about this. Sir Keith Joseph thought that on balance this would not be a good idea, There was no lackof advocacy of the contract in Whitehall. If an adverse decision were taken this would be because it was the the view that the weight of the sum of contracts could not take this ammount of subsidy. Sir M MacLehose accepted this. Sir Keith Joseph undertook to get in touch with Sir M MacLehose by the end of the week.
GUANGDONG NUCLEAR PROJECT
2.
Sir M MacLehose noted the recent cut-back in Chinese purchasing policy. However, they had been told that the Guangdong Nuclear Project would not be affected.
MULTI-FIBRE ARRANGEMENT (MFA)
3. Sir Keith Joseph said that HMG admired the Hong Kong economy.
It would There were, however, serious industrial problems in the UK.
be difficult to throw off all restraints. The form of the new MFA still had to be negotiated.
CONFIDENTIAL
/4.