equipment. Electricite de France is the

overall project manager.

French value: £6-700 million

UK value: £250 million

Location: 50 kilometres from Hong Kong:

transmission lines into Shenzhen and Hong

Kong.

HISTORICAL BACKGROUND

Levels of Negotiation

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The negotiations had two dimensions the

Macro-negotiations at Government level,

creating the opportunity, and then the

Micro-negotiations often interacting at

political level but with substantial

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pressure applied to a mass of detailed

technical and financial issues.

A.

Macro-Negotiations

The project evolved from various strands.

I 1978-79

China: overall energy-deficient, and hence the whole sector has priority. They have

very high hydro resources and potential,

and substantial coal reserves. But areas

- 2 -

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