RESTRICTED

FM DTI

TO IMMEDIATE BTC HONG KONG

TELNO OTTER 365

OF 24160OZ DECEMBER 91

RESTRICTED

HKB 182/3

Pa

189

140470

MDHIAN 7448

FOR HEAP FROM DAY PEP2

SHAJIAO C POWER STATION: CHINA; YOUR OTTER 246

85

1. EXCELLENT NEWS. I UNDERSTAND FROM GECA THAT THE LETTER OF INTENT WAS INDEED SIGNED ON SAT. 21 DECEMBER. ALL VERY APPRECIATIVE OF YOUR STERLING SUPPORT.

2. THERE IS STILL A LONG WAY TO GO ON THE CONTRACT: NOT LEAST THE FORM OF THE FINANCIAL PACKAGE WILL NEED TO BE RESOLVED: IN PARTICULAR WHAT COUNTRY RISK THE PROJECT WILL BE. THE COMPANY WILL COME BACK TO US AND ECGD WHEN THE SITUATION IS CLEARER.

3. PETER LILLEY IS HAVING LUNCH WITH LORD PRIOR AND THE GEC BOARD ON 8 JANUARY 1992. BRIEFING HAS BEEN PREPARED BY BOTH ECGD AND OURSELVES ON THIS PROJECT.

YYYY

DISTRIBUTION

6

ΜΑΙΝ

NO DISTRIBUTION

MR HALL PEP/DTI

MR CASEY PEP2/DTI MR PENTECOST ECGD

JOINT DIRECTORATE HKD

ERD

NNNN

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