THIS BASIS. IT WOULD INEVITABLY BE INTERPRETED AS USING THE HONG KONG AGREEMENT AS A LEVER TO GAIN THE CONTRACT FOR GEC. AGAIN AS I HAVE SAID IN EARLIER TELEGRAMS THERE IS LITTLE ENTHUSIASM FOR THE
JECT HERE: E.G. THERE IS ANXIETY ABOUT THE SAFETY ASPECTS: CONCERN THAT THE HONG KONG CONSUMER WILL EVENTUALLY HAVE TO PAY TOO HIGH A PRICE FOR THE ELECTRICITY PRODUCED: AND FEARS ABOUT DELAYS AND COST OVER-RUNS.
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4. SECONDLY, IT WOULD BE VERY RISKY TO ASSUME THAT SUFFICIENT PROGRESS ON THE OUTSTANDING ISSUES CAN BE MADE IN ORDER TO BE CERTAIN THAT THE DOCUMENTS COULD BE SIGNED. THE EARLIEST (AND AS YET UNCONFIRMABLE) DATE ON WHICH THE EXECUTIVE COUNCIL CAN CONSIDER THE DRAFT CONTRACTS, WHICH WILL BE ESSENTIAL TO THE AGREEMENT ON OFF-TAKE AND THE FORMATION OF THE JOINT VENTURE COMPANY, WILL BE DECEMBER 18. GIVEN THE COMPLEXITY OF THE DOCUMENTATION, AND THE IMPORTANCE OF THE ISSUES INVOLVED IT IS AT LEAST POSSIBLE THAT THE EXECUTIVE COUNCIL WILL REQUIRE MORE THAN ONE BITE AT THE CHERRY BEFORE THEY REACH A CONCLUSION: AND THAT IN CONSEQUENCE THE ISSUES WILL NEED TO BE CONSIDERED FURTHER AT A MEETING EARLY IN THE NEW YEAR. THERE WOULD BE STRONG RESENTMENT AMONG EXCO MEMBERS IF IT APPEARED THAT THEY WERE BEING PRESSURED INTO A QUICK DECISION ON MATTERS OF SUCH MAGNITUDE. SUCH PRESSURE WOULD BE COUNTER- PRODUCTIVE: WITHOUT IT I AM OPTIMISTIC THAT EXCO WILL ACCEPT THE PROPOSITIONS. IN ANY CASE, EVEN IF THEY DID REACH A DECISION ON DECEMBER 18TH THERE COULD BE NO PROSPECT OF FORMING THE JOINT VENTURE COMPANY SUFFICIENTLY QUICKLY TO ENABLE LETTERS OF INTENT TO BE ISSUED OR OTHER DOCUMENTS TO BE SIGNED ON THE 20TH.
5. THERE IS NO DOUBT THAT HONG KONG WILL BE LOOKING TO THE VISIT FOR A DEMONSTRATION OF COMMITMENT ON THE PART OF THE UNITED KINGDOM GOVERNMENT AND THE CHINESE GOVERNMENT TO THE AGREEMENT ON THE FUTURE OF HONG KONG. TO ELEVATE THE PROMOTION OF SINO/BRITISH TRADE TO A POSITION OF ANY PROMINENCE DURING THE VISIT COULD ONLY DETRACT FROM THE IMPACT OF THAT DEMONSTRATION.
YOUDE
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