HOFO 037/03
PP DO T
GRS 200
CYPHER CAT/A
.FM BTC HONG KONG 031830Z
RESTRICTED
Pizg
NO DISTRIBUTION
TIZDOT
TRED
HKD.
TO PRIORITY DOT TELNO CREDA 75 OF 3 DECEMBER.
FOR C.W. ROBERTS CRE 4 FROM KINNEAR.
YOUR TEL CREDA 169: GOVERNOR'S CALL ON THE SECRETARY OF STATE FOR TRADE.
(17)
YOU WILL BY NOW HAVE MY LETTER OF 26 NOVEMBER REPORTING ON THE FIRST JOINT MEETING. THE OFFICIAL RECORD IS IN TODAY'S BAG WITH LETTER REPORTING ON JOHN BROWNE'S VISIT TO HONG KONG. AS A RESULT OF THIS HE WILL WISH TO TALK TO YOU ABOUT THE POSSIBILITY OF APPOINTING SOMEONE FULL-TIME TO DEAL WITH HONG KONG AT YOUR END TO RECIPROCATE THE NEW INITIATIVE BEING TAKEN HERE.
2. YOU ARE AWARE OF THE NEED FOR A NEW POWER STATION. IT IS NOT
YET CLEAR HOW THIS WILL BE FINANCED. KADOORIE IS LOOKING TO AN ENTIRELY NEW COMPANY NOT ASSOCIATED IN ANY WAY WITH CLP AND IS
TAKING THE LINE THAT CLP WILL NOT BE ABLE TO ACT AS A GUARANTOR
FOR ANY LINE OF CREDIT. HE MAY BE FISHING TO SEE WHETHER THE
GOVERNMENT WILL BE PREPARED TO GIVE ITS GUARANTEE, BUT I WOULD
RULE OUT THIS POSSIBILITY. NOR DO I SEE ANY PROSPECT OF FINANCIAL
PARTICIPATION BY THE GOVERNMENT, WHATEVER THE OUTCOME,SUPPLIER CREDIT WILL PLAY A PART AND THE COST OF PLANT FOR THE FIRST PHASE OF THE NEW STATION (FOUR 350MW SETS BEING INSTALLED FROM 1982-87) WILL BE THE ORDER OF £150 MILLION. IT WOULD BE USEFUL IF THE
SECRETARY OF STATE COULD STRESS TO THE GOVERNOR THE IMPORTANCE
OF THIS PROJECT GOING TO BRITAIN (WHILE RECOGNISING THAT THIS WILL
NOT BE WITHIN HIS CONTROL) AND ASSURE HIM THAT WE WILL DO EVERY THING NECESSARY TO ENSURE THAT ANY SUPPLIER CREDIT REQUIRED WILL
BE AVAILABLE ON COMPETITIVE TERMS.
KINNEAR
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