TNAG-0636-FCO40-784-Supplies-of-electricity-for-Hong-Kong-1977 — Page 47

COMMERCIAL IN CONFIDENCE

ii

iii

was

between Hong Kong and Mainland China exasperating the Esso representatives on CLP/PEPCO. Although it was true that Sir Lawrence had said on more than one occasion that he wished to concern himself with the philosophy of the British approach and that "the last thing I want to talk about is the price" the change in circumstances in Hong Kong meant that the matter of the prospective British price was now more urgent;

he felt that Sir Lawrence had greatly exaggerated during our conversation earlier that morning the role that CEGB could play.

CLP had draw up a

fairly detailed specification and he know that GEC themselves had done a great deal of work

in the design of a possible power station for Hong Kong. Mr Stones said that he would of course maintain

to the CLP/PEPCO Board that the involvement of the

CECB in the design of the power station was of great value, but he doubted in practice whether this would prove to be the case;

Mr Stones' own judgement was that a combination

of the promise of the technical involvement of the CEGB and the provision of a power station at a price per kilowatt of commissioned capacity which was broadly in line with that quoted by Parsons for the Loy Yang contract in the State of Victoria would win the backing of the CLP/PEPCO Board.

I said to Mr Stones that before coming to Hong Kong I had heard suggestions that the State of Victoria was not taking the Parsons bid seriously as it represented what Sir Lawrence would describe as a "suicidal" bid by a company desperate for an order. Mr Stones maintained that in his own discussions with the State of Victoria within the previous two weeks, they had not been taking this line.

E MEETING WITH CHINA LIGHT AND POWER, WEDNESDAY 15 JUNE

AT 9.15am

1

With the exception of Mr Gemmill, who had returned to London, all those present at our first meeting of 13 June (meeting A above) were also present at this meeting.

2 Sir Lawrence opened the meeting by referring to the possibility of the involvement of the CEGB in the design of the new power station along the same lines as he had privately put

the notion to me the previous day. Sir Lawrence then said that

Michael Kadoorie had rung him from England where he

his son,

10

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