“COMMERCIAL IN CONFIDENCE
he hoped that it would be possible for HG to find a way of absorbing the cost of a comprehensive system designed for the CEGB for CLP/PEPCO. The provision of CEGB services free of charge so far as CLP/PEPCO were concerned "should prove a useful contribution towards the overall reduction in the cost per kilowatt installeā".
4
In putting this proposal forward Sir Lawrence added that CLP had been very disappointed with a transmission study which the company had recently commissioned from BEI (the international consultants of the electricity supply industry). The study had cost the company £60,000 and had proved extremely unsatisfactory. He had heard that BEI had put very junior staff onto the project and that senior BEI management had acknowledged that they had done a "very disappointing" piece of work when they had handed it over. If the CEGB were to be fully involved it was essential that the Board was fully committed to the work it was undertaking. If the team the CEGB appointed was less than totally committed their involvement in the project could do more harm than good to British prestige in Hong Kong.
5 In reply I reminded Sir Lawrence that I had said the previous evening that the CEGB was in principle anxious to do whatever it could which might assist British companies to win major contracts in Hong Kong. Mr Lippitt's telegram had not laid much stress on this because we had been under the impression in London that Sir Lawrence had been looking for one organisation HG or a private sector company which would take on full responsibility for a large programme and which would decide for itself whether or not it wished to make use of the services of the CEGB. I said that I was in no doubt that the total commitment of the CEGB could be secured. The incident he had referred to was unfortunate but it provided a lesson: I felt that the personal interest of the Prime Minister in this project would do a great deal to secure the commitment which Sir Lawrence was seeking. So far as the financial arrangements Sir Lawrence had in mind were concerned I would have to pursue this issue when I returned to London.
6 Sir Lawrence said that he hoped the CEGB would be able to design a 4 x 350 MW power station with high voltage transmission facilities; coal handling facilities including a pier; and ash handling facilities. He did not wish CLP/PEPCO to be involved in this work but would rather that the result of the CEGB's work be considered by a team appointed by CLP/PEPCO (possibly a firm of international consultants) who would advise on the points advanced by the CEGB. In response to this, I said
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