Proposed New Company
He has proposed that a new company should be formed to own and operate Castle Peak and suggested that a British company might be prepared to invest in it. We understand that this
proposal has lapsed. If this proves not to be the case he could
told that it had been put to GEC and we would be pursuing it.
Tsing Yi Extension
Since Sir Peter Carey visited Hong Kong proposals have been discussed between CLP and GEC about an extension of the Tsing Yi station to enable CLP to meet requirements up to 1983. GEC have proposed the sale of two generators now being made for the Kilroot (NI) power station, but surplus to requirements. Sir Lawrence could be asked if Tsing Yi extension was still a probability.
CPRS Report: Drax B
Sir Lawrence has read the CPRS report and has shown an interest in the Drax B proposal as a means of assisting the UK industry.
considers Castle Peak to be a more practical alternative of
ensuring an order. It could be pointed out that the power plant
industry would need exports in addition to the Drax B order in
order to overcome short term difficulties. The Government is
determined that the industry should be competitive in the export
market.
He
Freight Rates
Sir Lawrence has suggested that we should look into the question of the possibility of equalising freignt rates between UK and Japan. These form a significant item in UK costs because of the mileage involved (2,000). GEC are now looking at this problem with a view
to shipping larger quantities in one ship, but there is not much
cost hope that the can be reduced significantly. This is a problem which we are examining and we shall do all we can to ensure that
the cost is minimised within the total bid.
MEPT4
29.3.77
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