COMMERCIAL IN CONFIDENCE
4
Esso (Hong Kong) still had to convince its Houston head office that the proposed investment was desirable. Secondly, while the Hong Kong economy was currently buoyant he was not convinced this buoyancy would last. The economic recovery had flattened out and no improvement was foreseen during 1978. He foresaw tighter market conditiors in Hong Kong for some considerable time;
a coal contract with China whose terms would be made favourable to CLP through being off-set to some extent against the provision of UK mining equipment;
the British Government to provide a "Governmental umbrella" to the whole package - possibly through the provision of CEGB services and the continung good offices of the Department of Industry in being available to smooth the negotiations to a successful conclusion.
In further discussion, the Governor made the following points:
う
ii
he felt we should not try to make CLP/PEPCO feel committed to a ten year development programme. In his view it was better to offer a power station on a specific basis and to indicate in principle a willingness to undertake other major expansion items for CLP at competitive prices;
were Sir Lawrence Kadoorie to die in the near future, Sir Sidney Gordon would take over the chairmanship. Sir Sidney was a chartered accountant whose view of the Kadoorie approach had been very similar to that of Esso. Once Sir Lawrence gave up the reigns of power, there would be little prospect of negotiated contracts for future orders.
In conclusion the Govenor urged the Department of Industry
to recognise that a major collision on the MFA could come at a
wrong time for the power station contract. All our efforts could be rendered nugatory if relations betwem the UK and Hong Kong were very bad this autumn when CLP/PEPCO would be reaching a decison in principle.
A Jolantonal
A J MACDONALD IC2
20 June 1977
13
No comments yet.
Private notes are available after approval.