TNAG-0635-FCO40-783-Supplies-of-electricity-for-Hong-Kong-1977 — Page 189

CONFIDENTIAL

:

5. HE ENVISAGES THAT THE NEW POWER STATION WILL BE COAL/OIL FUELLED,

WITH THE MAIN FUEL SUPPLY CHINESE COAL. WHILE THIS HAS ITS

LOCAL POLITICAL CONVENIENCES, SUCH A STATION OF BRITISH MANUFACTURE

COULD ALSO ASSIST BRITISH EXPORTS TO CHINA.

6. I AM STRONGLY IN SYMPATHY WITH SIR LAWRENCE'S MOTIVES IN WISHING

TO CONTINUE TO BUY BRITISH EQUIPMENT AND TO AVOID GOING TO INTERNATIONAL TENDER. ON THE OTHER HAND, THERE CAN BE NO DOUBT

THAT HE CANNOT DO SO IF THE MARGIN BETWEEN BRITISH AND JAPANESE

PRICES IS AS WIDE AS HE FEARS.

7. SIR PETER CAREY IS AWARE OF SIR LAWRENCE'S IMPENDING VISIT

TO BRITAIN AND OF THE BACKGROUND. SIR PETER THORNTON HAS ALSO MET

KADOORIE AND IS FULLY IN THE PICTURE. SIR LAWRENCE IS HOPING TO

SEE MINISTERS CONCERNED AND I CONSIDER THE IMPORTANCE OF HIS

PROBLEM WOULD JUSTIFY THIS.

8. I SHOULD BE MOST GRATEFUL FOR ANYTHING YOU AND THE P.U.S.'S

CONCERNED CAN DO TO ENSURE THAT SUFFICIENT INTER-DEPARTMENTAL

AND OTHER CONSULTATION (E.G. WITH INDUSTRY) IS CONDUCTED

IN ADVANCE OF THIS VISIT TO ENABLE SIR LAWRENCE TO RECEIVE A CLEAR

ANSWER TO THE QUESTION OF PRINCIPLE IN PARA. 4. TIME IS TOO

SHORT TO ALLOW SIR LAWRENCE TO WAIT LONG: MOREOVER HE IS AN OLD

AND IMPATIENT MAN AND I SHOULD EXPECT HIM TO REACT TO INDECISION.

HOWEVER IT SEEMS POSSIBLE THAT IF THE CONCLUSIONS OF THE CPRS

REPORT ON THE STATE OF THE ELECTRICITY GENERATING INDUSTRY ARE ACCEPTED, A DEAL ALONG THE LINES ENVISAGED MIGHT BE OF MUTUAL BENEFIT.

9. THE SENIOR BRITISH TRADE COMMISSIONER HAS ENDORSED THIS

REQUEST.

FCO PLEASE SEND COPIES TO SIR P. CAREY AND SIR P. THORNTON.

MACLEHOSE

DEPARTMENTAL DISTN

HKD

ENERGY D

TRED

FED

ECON D

-2- CONFIDENTIAL

COPIES TO

SIR P CAREY

DOI

SIR P THORNTON DOT

SIR JACK RAMPTON DEPT OF ENERGY