TNAG-0636-FCO40-784-Supplies-of-electricity-for-Hong-Kong-1977 — Page 39

COMMERCIAL IN CONFIDENCE

they were proposing to act for CLP/PEPCO as engineering co-ordinators and as civil and mechanical and electrical contractors. This telex stated that BB "have been seeking means to assist CLP in its large electrical power extension. Very high level meetings have been held by us with HG and other interested UK industrial groups and we are pleased to note that our Department of Trade has communicated its support for your programme. We are delighted with this further opportunity of being of assistance and wish to emphasise that we are able to assume the role of main contractor for all your requirements. BB with the support of HG has offered to take a main contractor role in the design and construction of your future power programme if that is what the situation demands or alternatively such other role as may emerge from the negotiations."7

Sir Lawrence said that the telex was somewhat involved but if his interpretation was correct the Hong Kong companies would not be prepared to employ them in such a capacity. CLP/PEPCO had known their suppliers for years and if obliged to purchase the necessary plant through the usual commercial channels certainly had no need for the introduction of the third party or of main contractors to design and construct their future power programme on a turnkey basis. Such an element would only involve additional expense and lead to confusion.

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Responding to Sir Lawrence's remarks I said that

in London we appreciated that the consierable period which had elapsed between Sir Lawrence's discussion with the Prime Minister and the receipt of Mr Lippitt's telegram a week previously might have given the impression of discourtesy, and possibly disinterest, in the efforts which Sir Lawrence had been making in the hope of making it possible for CLP/PEPCO to buy British equipment. I wished to assure everybody that this was not the case: we had given the matter a great deal of attention and the Prime Minister personally had shown a close interest in our work. In devising proposals to put to CLP/PEPCO, we had been guided by Sir Lawrence's discussion with the Prime Minister and by his subsequent conversations with the Governor of Hong Kong; by reports we had received from the British Trade Commissioner of discussions with members of the CLP/PEPCO Boards; and by reports by company executives (either from their Hong Kong representatives or from executives who had visited Hong Kong). We were anxious not to have face-to-face discussions with CLP/PEPCO until we had specific proposals for consideration: at the same time, I recognised that it would have been better if we had come to Hong Kong some weeks ago to make sure that the lines along which our thinking was developing broadly accorded with the approach which Sir Lawrence had in mind.

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