TNAG-0637-FCO40-785-Supplies-of-electricity-for-Hong-Kong-1977 — Page 123

OVERSEAS PROJECTS GROUP

DEPARTMENT OF TRADE

1 VICTORIA STREET

LONDON SW1H OET TELEPHONE DIRECT LINE 01 2155454

SWITCHBOARD 01 215 7877

IN CONFIDENCE

E Gray Esq

Babcock & Wilcox (Operations) Ltd

165 Great Dover Street

LONDON

SE1 4YB

14 July 1977

во

Jear do Gray,

HONG KONG POWER STATION

1

I refer to your application for assistance from the Overseas Projects Fund towards expenditure incurred on pre-contractual activities in respect of the contract for the above project which you are pursuing jointly with GEC.

2 As you are aware, in normal circumstances, the maximum contribution which may be made from the Fund towards any one project is £100,000. In addition you will know that in general assistance is offered only to main contractors, who may include some sub-contractors' expenditure if they wish; but assistance is not offered direct to sub-contractors. Because, however, of the special circumstances surrounding this project, we are prepared, as a concession which applies only to this project, to treat the turbines and related mechanical and electrical equipment on the one hand, and the boilers, high pressure pipe work and coal and ash handling equipment on the other, as two major contracts within a major overseas capital project. means that we are prepared to allocate more than £100,000 to the project and it enables me to offer you a separate contribution of 50% of your pre-contractual expenditure within the maximum of £75,000 which is applied to contracts which have a gross value not exceeding £100m. I must emphasise that this concession must be treated with the strictest confidence. enclose the formal offer of assistance on this basis.

Your incurly,

This

I

P G F Bryant

Head of Overseas Projects Group

Enc