generation as a datum, employing Lazards. With the Anglo/French Government agreement

CLP pushed ahead with the negotiations to

establish a Joint Venture Company.

With the Hong_Kong_Government's approval in principle, the structure of the JVC

was devised notably the Hong Kong stake

in the JVC was contributed by HKNIC, in

which in turn CLP provided equity and HKG

guaranteed loans.

In Europe, there were a series of technical

exchanges between China and France and

Britain, but notably an appraisal by the Chinese of GEC's technical capability.

After protracted negotiations, the UK and French Government signed separate memoranda

with the Chinese Government in April 1983

followed up by a further memorandum on the

UK side in December 1983. These memoranda

covered both financial and commercial

aspects, including confirmation of the acceptability of GEC's design, and covered the principles of the offtake agreement

in the case of the UK memorandum. These

were key documents in determining the

field for subsequent negotiations, particularly on the financial side.

They

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