TNAG-0636-FCO40-784-Supplies-of-electricity-for-Hong-Kong-1977 — Page 78

CONFIDENTIAL

V

vi

Use would be made of the expertise and facilities of the Central Electricity Generating Board, especially

in respect of the commissioning and operation of the power station. UK Industry would also make use of the experience of the National Coal Board.

The British Government would offer favourable buyer

credit terms for an amount equal to 100 per cent of the

value of UK goods and services which are to be supplied

under the contract.

vii

The buyer credit facility would be denominated in US Dollars. If Sir Lawrence wished, we would explore the possibility of denominating the buyer credit loan in Hong Kong Dollars or other ways of minimising the exchange

risk.

dr.hippitt

viii

ix

The British Government will, of course, provide all assistance that it can to facilitate export of coal from

China and sale of UK mining equipment to China.

A team led by myself together with Lazards, who are advising the department, wishes to visit Sir Lawrence to discuss best means of implementing programme. This would include the feasibility of investment by UK in new Hong Kong company (whose other shareholders might be China Light and Power; PEPCO; and Investing Public) which would purchase facilities. The objective would be for the project to be self financing out of

future revenues.

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