TNAG-0636-FCO40-784-Supplies-of-electricity-for-Hong-Kong-1977 — Page 32

ше

CONFIDENTIAL

we can in written, Euler,

Hanik Robaks

I

- Dylly

Leave it up. Robart's to

To Un Macdonald, Doî

cm

تملكا

we need to cepy this to othe departmes? ! Copy to her heenway

who should choroidy All.

Tuis lella might also be Aveir "HEPSP" duchybihin but that is for

DUI/Do? to decids.

DOT

C Roberts Esq

CRE 4

DOT

LONDON SW1

Brun

-5896.

22 June 1977

tals

HONG KONG POWER STATION PROJECT

1.

ALS

130)

Alistair Macdonald of IC2 will by now have given you full account of the various exchanges which we had during his visit with China Light and Power. His visit was invaluable as a demonstration of HMG's resolve to enable CLP to order their new power station from Britain and as a means of clarifying the form of response required to Sir Lawrence's approach to the Prime Minister. It also gave us a valuable

insight into the views of the key members of the CLP/PEPCO board on the project. It is important to recognise that they do not speak or think in unison and that the various messages and suggestions which are filtering through to us from Sir Lawrence Kadoorie do not always represent the considered view of our customer. I think therefore it might be useful to set out the basic position of each of them based, as they must be, on little more than a fortnight's observation.

2. First there is Sir Lawrence himself. He is absolutely sincere in his desire to buy British provided that our response makes it possible for him to convince his board, shareholders and eventually the Hong Kong public that the deal is so much in their interests that open tendering is not necessary. But our discussions last week revealed that, while Sir Lawrence is looking for a grand design in the British response, his colleagues have their minds focused firmly on the power station (and its price). I fear that Sir Lawrence's frequent references to

a novel approach", ";

'a complete package", "muddying the waters", "a political gesture" and "a concealed price" may have served to confuse us as to the kind of offer which he will be able to persuade his colleagues to accept. But he is without doubt the principal figure on the CLP side who commands great loyalty and respect from his team and we must be careful never to imply that we question his advice on what is needed.

3.

The second is Bill Stones, the Deputy Managing Director and Chief Engineer, who having studied the CPRS report persuaded Sir Lawrence to approach the Prime Minister and is the chief advocate of buying British even though he is not necessarily wedded to GEC as turbine suppliers. Bill Stones is clearly

/worried.....

CONFIDENTTAL