TNAG-0635-FCO40-783-Supplies-of-electricity-for-Hong-Kong-1977 — Page 143

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Sir Lawrence said that, so far as price was concerned, he had to bear the interests of his customers in mind, but that if the price differential was within only 1 or 2%, this should be tolerable. The Japanese were particularly strong competitors, especially since

Price was not they regarded Hong Kong as within their own area. the main consideration; what was needed was an entirely new approach and he hoped that the group to which the Prime Minister, referred coul produce an entirely novel package.

In conclusion, the Prime Minister said that he hoped that the group would be able to throw up some ideas, and that they would then make contact with Sir Lawrence as soon as possible. Mr. Stones said that they would await an approach, and would certainly do everything possible themselves to help.

As he left, Sir Lawrence told me that he thought it would be helpful if Lord Rhodes could in some way be associated with the group in view of his knowledge of China and of the coal industry.

I should be grateful if you would please keep me informed of further developments. The Prime Minister is particularly anxious that the opportunities mentioned by Sir Lawrence should be followed up urgently.

PEUW

John Mills, Esq. Department of Industry.

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