TNAG-0635-FCO40-783-Supplies-of-electricity-for-Hong-Kong-1977 — Page 121

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35A

TO NEGOTIATE A TRIANGULAR PACKAGE INVOLVING: SALE OF THE POWER STATION TO CHINA LIGHT AND POWER (OR SOME NEW HONG KONG COMPANY) # A CONTRACT FOR THE SUPPLY OF COAL FROM CHINA: AND THE OFF-SETTING OF THE PRICE OF THE COAL AGAINST THE SUPPLY OF BRITISH MINING EQUIPMENT TO CHINA.

3. I HAVE WRITTEN TO HM AMBASSADOR, PEKING, ABOUT THE PRACTICABILITY

OF ATTEMPTING 2(D) IN PRESENT CIRCUMSTANCES, AT ANY RATE FOR THE FIRST 350 MW SET WHICH MUST BE ORDERED BEFORE THE END OF THE YEAR (COPY OF LETTER SENT TO YOU BY BAG).

BUT I AM NOT SO MUCH CONCERNED IN THIS TELEGRAM WITH THE FEASIBILITY

OF ANY OF THE IDEAS IN PARA. 2, BUT RATHER TO MAKE SURE YOU APPRECIATE HOW SIR LAWRENCE SEES HIS PROBLEM, AND THE SORT OF WAY

HE HOPES YOU WILL BE ABLE TO SOLVE IT IN THE MUTUAL INTEREST.

4. IN ADDITION TO THE IDEAS IN PARA 2. SIR LAWRENCE ALSO SUGGESTED

A COMPOSITE PLANT FOR PRODUCTION OF BOTH ELECTRICITY AND DESALINATE WATER. THIS IS A NON-STARTER BECAUSE THE TIMING OF DECISIONS ON THE TWO PLANTS DO NOT COINCIDE, AND OUR CONSULTANTS' REPORT DESALINATION WILL NOT BE AVAILABLE FOR ABOUT 4 MONTHS. THIS WILL ADVISE WHETHER A THERMAL OR REVERSE OSMOSIS SYSTEM WOULD BE PREFERABLE, AND IF THE FORMER WHETHER OR NOT THERE WOULD BE ADVANTAG IN COUPLING IT WITH A POWER STATION. THOUGH CONCEIVABLY THIS IDEA

GHT BE APPLICABLE TO THE SECOND SET, IT IS NOT RELEVANT TO THE PRESENT PROBLEM.

MACLEHOSE

FILE S

HK & GD (5)

TRED

EN D

FED

RES D) (FE SECT)

PS/LORD GORONWY ROBERTS PS/PUS

MR CORTAZZI

MR MURRAY

MR THOMAS

MR BURROWS

2

COPIES TO:

PS/MR WILLIAMS PS/SIR P CAREY MR BULLOCK DEP.SEC MR CLERK MEPT

MR HAVELOCK MEPT

MR GRAY DEP.SEC

DOT

IR ASHWOOD CRE4

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