TNAG-0636-FCO40-784-Supplies-of-electricity-for-Hong-Kong-1977 — Page 111

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3. SIR LAWRENCE UNDERLINED THE NEED TO AVOID GOING TO OPEN TENDER

BY THE CREATION OF AN IRRESISTIBLE BRITISH PACKAGE WHICH WOULD

OBFUSCATE THE STARK FACT THAT ANY PRICE PUT FORWARD BY A BRITISH

COMPANY FOR THE BOILERS AND TURBINES WOULD BE UNDERCUT BY THE JAPANESE. HE SHOWED ME, IN STRICT CONFIDENCE, A LIST OF QUOTATIONS FOR A NEW 50% MEGOWATT STATION IN TAIWAN. HITACHI HAD BID U.S. DOLLARS 17.5 M, MITSUBISHI DOLLARS 19M, C A PARSONS DOLLARS 25 TOSHIBA DOLLARS 27, WHILE BROWN BOVERI, WESTINGHOUSE AND GEC OF AMERICA HAD ALL BID ABOUT DOLLARS 29 MILLION. HE SUGGESTED THAT THE FAILURE OF THE JAPANESE TO UNDERCUT BRITISH BIDS IN MELBOURNE BY SUCH LARGE AMOUNTS ILLUSTRATED HIS THEORY THAT JAPAN REGARDED HONG KONG AS WITHIN ITS SPHERE OF DIRECT ECONOMIC INTERESTS WHERE JAPANESE BIDS WERE DESIGNED TO RULE OUT ANY COMPETITION.

4. HE REMAINED MOST CONCERNED THAT HIS TACTICS FOR ENSURING THAT

CLP CONTINUED TO BUY BRITISH GENERATING EQUIPMENT SHOULD NOT BECOME PUBLIC KNOWLEDGE AS HE MUST DEMONSTRATE TO HIS BOARD, TO HIS SHAREHOLDERS, TO THE HK GOVERNMENT AND TO THE HONG KONG CONSUMER THAT WHATEVER COMPREHENSIVE PACKAGE IS PUT FORWARD BY BRITISH

INDUSTRY IS IN THEIR BEST INTERESTS. IT WAS FOR THIS REASON THAT STONES HAS CANCELLED HIS PROPOSED VISIT TO UK AND CLP OFFICIALS HAVE BEEN INSTRUCTED NOT TO INVITE ANY PUBLIC TECHNICAL PRESENTATIONS FOR A NEW STATION (EVEN FROM GEC WHOSE EXCELLENT ADVANCE WORK SIR LAWRENCE WISHES TO CONCEAL) UNTIL SIR LAWRENCE HAS HAD AN OPPORTUNITY TO EVALUATE THE ACCEPTABILITY OF THE

PROPOSALS NOW BEING FORMULATED BY THE DOI. SIR LAWRENCE LEAVES FOR SWITZERLAND ON JULY 1 AND IS DUE TO REACH LONDON ON 23 JULY

FOR A FORTNIGHT'S STAY DURING WHICH HE EXPECTS TO DISCUSS OUR PROPOSALS IN DEPTH. IT WOULD BE GOOD TACTICS TO GET AN OUTLINE

OF THESE TO HIM BY JUNE 20 SO THAT HE MAY DISCUSS THEM IN CONFIDENCE

WITH HIS CLOSEST ADVISERS BEFORE LEAVING HONG KONG.

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/5. I ASKED