TNAG-0637-FCO40-785-Supplies-of-electricity-for-Hong-Kong-1977 — Page 13

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CLP/PEPCO were content with the intended scope of our package, and I was able to obtain clarification of certain points eg the civil engineering designs. It was clear that the CEGB team which recently visited Hong Kong had made a favourable impression. CLP/PEPCO were less impressed than Sir Lawrence Kadoorie with Sir Derek Ezra's offer of the NCB's facilities as "coal advisers" to CLP/PEPCO;

CLP/PEPCO have still not abandoned their hope that the British Government would in some way either directly or through the NEB - sign a contract with them. Our discussion on this point was a repetition of my

discussion in Hong Kong in June. On this occasion, however, I was able to report on your own recent discussion of this issue with Sir Lawrence Kadoorie when he accepted that separate contracts were proferable to a consortium company, whether or not the NEB was involved -- and I referred other CLP/PERCO executives to Sir Lawrence. I am in no doubt that this issue will be raised again when our proposals are formally put to CIP/PEPCO.

AJ Marimand

A J MACDONALD IC2

Room 610 V/S 215-5015

15 August 1977