TNAG-0635-FCO40-783-Supplies-of-electricity-for-Hong-Kong-1977 — Page 151

Mr Duffy

Pla

CONFIDENTIAL

Reference...

НКК 164/1

(23

K

HONG KONG:

GENERATING EQUIPMENT FOR CHINA LIGHT & POWER COMPANY

1. You will wish to see the following papers that have accumulated since my minute of 29 March to Mr Dales:-

2.

(ii)

(iii)

a copy of the DOI's brief for the meetings that their Minister of State and Sir Peter Carey had with Sir Lawrence Kadoorie on 30 March;

a copy of the DOI's brief for the meeting which the Prime Minister is to have with Sir Lawrence later today;

Lord Rhodes' manuscript letter of 30 March to

Lord Goronwy-Roberts enclosing a copy of a memorandum

that Sir Lawrence Kadoorie was giving to the DOI about his company's proposals; and

(iv) Mr Bacon's minute of 31 March saying that, in the event,

it will not now be possible for Sir Lawrence Kadoorie to see Lord Goronwy-Roberts.

I have spoken to Mr Finch, DOI (211-4655), this morning, mainly to pass on to him what Mr Bacon has said in paragraph 3 of his minute. Mr Finch said that the DOI also felt that their meetings with Sir Lawrence Kadoorie had gone very well. It had turned out that the potential business for British companies was on a much larger scale than had hitherto been appreciated. It was likely to be of the order of £300 million as compared to the initial estimate of about £150 million. Mr Finch said that the DOI had a number of ideas about how to follow up the opening which Sir Lawrence Kadoorie had given them. They were thinking about the setting up of a joint Whitehall/Industry group to look at the matter in detail and to organise bids. One new point that had emerged from the meetings with Sir Lawrence Kadoorie was that his Board had already authorised him to approach us about a special arrangement whereby British firms would get the business. Sir Lawrence was not therefore operating entirely off his own bat.

3. I told Mr Finch that I thought we would like to let the Governor know about the outcome of Sir Lawrence Kadoorie's visit. He said that Sir Peter Carey had received a letter from the Governor asking precisely this. I suggested to Mr Finch that we might aim to send a telegram to the Governor saying who Sir Lawrence had seen and giving the gist of the discussions with him, and that this might be followed up by a letter from Sir Peter Carey. Mr Finch thought that this was probably right.

He will wait to hene

the outcome of the Prime Minister's meeting with Sir Lawrence and will then be in touch with us.

REC

RE

- 1 APR 1977

31 March 1977

HKK 164

ᄇ

D F Milton

Hong Kong Department

CONFIDENTIAL

LAGT