dti

the department for Enterprise

the excellence of the EDF engineers. He made ritual criticism of HMG for failing to send an official visitor earlier but was clearly pleased that I had gone. He contrasted our performance with the three visits already allegedly made by the French Ambassador to the site. Mr Holloway suggested that Lord Young X might visit in April and this would clearly be most welcome to

CLP.

5. When I came through Paris on my way home I was able to report to the French Treasury and DREE (Trade Ministry) that I had seen the British and French working in harmony at Daya Bay. Mons. Joutard, Sous Directeur Politique Financiere at the DREE, commented that this was the first Anglo-French cooperative project overseas of this size that he was aware of.

Future power requirements:

Hong Kong and Guangdong Province

6. Bill Stones of CLP said that he was continuing to work with Guangdong Power Corporation to replicate Castle Peak power station at Panyu in Guangdong (4x680 MW in two stages). He went on to explain that Hong Kong, given its current growth pattern, would require another 5000 MW to be in operation by 1996. CLP had put in proposals to the Hong Kong government for a 6x680 MW power station to be situated in Hong Kong or over the border in China. When I mentioned this to the Governor on the following day he was entirely relaxed on location but Lydia Dunn, Senior Member of Legco, believed that it should be in Hong Kong. Lydia Dunn said that the Special Administrative Region should not be too dependent on China for power (implying that Daya Bay represented sufficient dependence already).

7. If these two proposals are taken together there could be 10x680 MW business for GEC and other British companies. A disturbing element in pursuing this is however the demise of Babcocks boiler capabilities. Mr Stones is unlikely to be persuaded of NEI's ability to substitute for Babcocks (and Rihand II anyway suggests that NEI are now uncompetitive).

8. I also discussed future requirements with Gordon Wu of Hopewell Holdings. Although CLP personnel are helping to operate Shajiao B power station on the Pearl River, CLP and Hopewell operate more as competitors than associates in the twilight area of cross-border power supply and Wu complained of CLP's and Hong Kong Electric`s power monopoly in Hong Kong. Wu's own plans remain mercurial. He speaks of substituting for Shajiao C an 8x660 MW power station at Nei Ling Ting island on his projected Zhuhai/Tuen Mun super highway road link across the

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