CONFIDENTIAL
FM BTC HONG KONG
CONFIDENTIAL
HKC166/1
TO DESKBY 01120OZ DTI
TELNO INDUS 65
OF 01050OZ DECEMBER 89
AND TO DESKBY 01090OZ PEKING
FOR GOODMAN EM4
Hay well for if (64
必
055377
MDHIAN 7023
Mr Holroyd
so much for Botsh industry deserving Mr Stone
YOUR TELNO INDUS 115: DAYA BAY
none of the calle in
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1. I ACCOMPANIED SIR ROBERT DAVIDSON, OF GEC ALSTHOM, STONES OF CHINA LIGHT AND POWER, SALMON AND TROUILLIER, BOTH OF GEC ALSTHOM, TO DAYA BAY ON 29 NOVEMBER. IT WAS AN UNCOMFORTABLE VISIT IN WHICH GEC WERE HEAVILY CRITICISED THROUGHOUT FOR THEIR OWN PERFORMANCE AND THAT OF THEIR SUBCONTRACTORS, PARTICULARLY DAVY MORRIS. THE CRITICISMS REACHED SUCH A PITCH AT ONE POINT THAT SIR R DAVIDSON LOST HIS TEMPER AND IT TOOK AN HOUR OR TWO FOR THE ATMOSPHERE TO
RETURN TO NORMAL.
2. WE TOURED THE SITE IN THE MORNING, CONCENTRATING ON EQUIPMENT SUPPLIED BY GEC AND THEIR SUBCONTRACTORS, AND HELD AN ALL-AFTERNOON MEETING. AT THE MEETING GEC ALSTHOM WERE SUBJECTED TO A TWO HOUR CATALOGUE OF THEIR ALLEGED FAILURES AND DEFICIENCES BEFORE BEING GIVEN ANY CHANCE TO RESPOND. SIR R DAVIDSON THEN TOOK THE LINE, WHICH WAS PROBABLY FOR THE BEST IN THE CIRCUMSTANCES, THAT HE WAS NOT THERE TO GO INTO ALL THE POINTS OF DETAIL, WHICH HAD BEEN COVERED DURING A VISIT BY SALMON AND TROUILLIER AND OTHERS TWO DAYS EARLIER. HE ACCEPTED THAT SOME CRITICISMS WERE JUSTIFIED AND UNDERTOOK TO GIVE THEM HIS FULL ATTENTION AND TO IMPROVE GEC'S PERFORMANCE. HE SAID OTHER CRITICISMS WERE OF PARTS OF THE CONTRACT WHICH WERE NOT THEIR RESPONSIBILITY. A THIRD CATEGORY OF CRITICISMS WERE MINOR AND ROUTINE POINTS WHICH ALTHOUGH FACTUALLY CORRECT WERE BEING GIVEN AN IMPORTANCE THEY DID NOT DESERVE. HE EMPHASISED THAT GEC WERE A MAJOR REPUTABLE COMPANY THAT HAD SUCCESSFULLY CARRIED OUT COMPARABLE PROJECTS AROUND THE WORLD OVER A LONG PERIOD, AND THAT HE COULD NOT ACCEPT THAT THEY WERE A FIRM WHOSE TOTAL METHODOLOGY FOR HANDLING THE PROJECT WAS AT FAULT AS SOME WERE ALLEGING. (IT WAS CHARGES OF THIS SORT FROM A FRENCH REPRESENTATIVE
OF EDF DURING THE MORNING TOUR OF THE SITE THAT CAUSED SIR R DAVIDSON TO BLOW HIS TOP). SIR R DAVIDSON EXPLAINED THE NEW MANAGEMENT CHANGES WHICH GEC ALSTHOM HAD INTRODUCED INCLUDING A REPRESENTATIVE FROM ALSTHOM PUT ABOVE SALMON IN GEC MANCHESTER AND
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