CONFIDENTIAL

concerned about unproven equipment. It was noted however that

GEC could hever accept consequential loss.

Mr Brown then mentioned a discussion he had with an official

in the Hong Kong Government regarding its attitude to the

acceptance of power from Guangdong.

Approval would be given in principle although there were

misgivings about the intially higher tariffs - a problem of

which CLP and GPC were already aware. It was not the intention

of the Hong Kong Government to write a detailed critique of

the feasibility report.

Mr Stevens said that Westinghouse, in conjunction with Bechtel,

had written to the Secretary of State for Energy suggesting

that a joint venture arrangement be reached with NNC for exports,

initially to China, Finland and South Africa. Mr Manzie stressed

the importance of full consultation with all Departments before

SOS Energy replied; Mr Manzie also said that although the UK

programme was obviously important, an export strategy should be

given every consideration. He added that since the NNC had

no real capability in exports, a joint venture with Westinghouse

might well prove interesting. After some discussion, Mr Stevens

agreed to consult with other Departments before submitting a

response to his Secretary of State.

Mr Stevens

Mr Brown agreed to circulate a note of his meeting with

Nai Ling, and also discuss the ECGD how best to proceed on

the issue of guarantees and on a paper for EGC. Mr Ransom

Mr Brown

Mr Brown

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