TNAG-0635-FCO40-783-Supplies-of-electricity-for-Hong-Kong-1977 — Page 191

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Communication

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Reference.

from Ita. Meanwhile pl. copy this to Mr. Duffy. CR

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MR A HAVELOCK- MEPT4

cc Mr C Roberts

Mr J Mellon Mr Bryant

CRE4 FCO

OPG

FCC

HONG KONG POWER STATION

Sir Lawrence Kadorie, the Chairman of China Light and Power, has had a recent discussion with the Governor of Hong Kong.

Sir Lawrence had apparently read the CPRS Report, and. in particular the DRAX proposals, as a possible means of assisting the power generation industry.

Sir Lawrence put forward the idea that a new power station for Hong Kong should be considered as a more practical alternativeto the DRAX proposal.

The ideal solution for Hong Kong's power requirements would be met by a new 4, 350 megawatt coal fired unit. The total cost of this would be in the order of £150m of which approximately £50m would be for turbo generators, £50m for boilers, £25m for ancilliary hardware and £25m for civils. The idea was favourably received by the Governor, who either has, or is in the process of raising the matter officially with the UK.

The proposal would be that this power station be supplied from the UK under specially advantageous financial terms, but Sir Lawrence Kadorie had no specific proposals to put forward in this respect. Sir Lawrence is flying to Geneva on the 17 March and would like to continue on to London for a meeting with Eric Varley and/or Peter Carey and Peter Thornton, to discuss the project.

There would seem to be a lot of merit in using the industry to supply a power station that somebody actually wants, provided we get paid for it some time, rather than supply a power station which nobody wants which the tax payer will have to pay for anyway, and it would seem sensible to take up Sir Lawrence's suggestion for a meeting in London.

Since dictating the above I understand that Sir Lawrence's proposed visit to London would be around March 27, and we would have to let him know during his stay in Geneva whether a meeting in London was on or not.

S BAKER

Senior Industrial Adviser

V/527 Ext: 5132

11 March

1977

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HKK 1641