TNAG-0637-FCO40-785-Supplies-of-electricity-for-Hong-Kong-1977 — Page 73

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PP HONG KONG

GR 570

153

1600

CYPHER CAT A

NO DISTRIBUTON

FM DTI 28134OZ

CONFIDENTIAL

HKG Dien

MSD

PUSD

TO PRIORITY BTC HONG KONG TELNO CREDA 184 OF 28 JULY.

YOUR CREDA 111#POWER STATION PROJECT.

1. REGARDING DRAFT LETTER TO STONES, WE DO INTEND THAT OUR PACKAGE SHOULD STATE THAT THE SERVICES OF THE CEGB WILL BE AVAILABLE TO ENSURE THAT THE DEVELOPMENT IS SUCCESSFUL. ONLY QUITE UNFORESEEN CIRCUMSTANCES COULD CHANGE THIS.

REC ET IN REQI 37.51

- 1 AUG 1977

AKK le+ ||

2. IF YOU STILL WISH TO WRITE FORMALLY, THE TEXT, AFTER THE FIRST SENTENCE OF YOUR DRAFT, SHOULD BE QUOTE HMG'S COMPREHENSIVE PROPOSALS WILL INDICATE THAT THE EXPERIENCE AND SERVICES OF THE CEGB ARE BEING MADE AVAILABLE TO ACT ON BEHALF OF CLP/PEPCO TO ENSURE THAT ALL STAGES OF THE POWER STATION DEVELOPMENT ARE SUCCESSFUL. THE RECENT VISIT OF THE CEGB TEAM WAS DESIGNED TO CLARIFY THE SCOPE OF THE WORK REQUIRED. WE HOPE AS A RESULT TO ENSURE THAT THE UK PROPOSALS COVER ALL ASPECTS OF THE DEVELOPMENT AND THAT WORK PROCEEDS AS QUICKLY AS POSSIBLE. UNQUOTE.

>

3. REGARDING THE CEGB INVOLVMENT, AT MEETING BETWEEN CEGB AND COMPANIES CHAIRED BY MYSELF WE AGREED THAT IT WOULD BE TACTICALLY SENSIBLE FOR CEGB TO OFFER TO PAY FOR MOUCHEL WORK ON SITE EVALUATION, MOUCHEL WERE PRESENT AT MEETING AND WERE CONTENT. AS I UNDERSTAND IT, CEGB ADVISED CLP/PEPCO WHILE IN HONG KONG THAT THE CLIENT SHOULD HIRE AND PAY MOUCHEL. WE ARE NOW SUGGESTING DIFFERENT APPROACH THAT MOUCHEL SHOULD CARRY OUT WORK PROGRAMME AGREED BY CLP/PEPCO BUT THAT CEGB SHOULD MEET THE BILL. THIS WOULD BE ON UNDERSTANDING THAT IF HMG PACKAGE NOT ACCEPTABLE, MOUCHEL'S CONTRACTUAL RELATIONSHIP WOULD CHANGE AND ANY INFORMATION ALREADY OBTAINED COULD BE PURCHASED BY CLP/PEPCO. WILL YOU PLEASE DISCUSS THIS WITH CLP/PEPCO. AT MEETING TODAY SIR LAWRENCE KADOORIE HIMSELF ALSO PROPOSED COURSE OF ACTION WHEREBY CEGB PAID FOR MOUCHEL AND IT WOULD CLEARLY HAVE HIS APPROVAL.

4. CEGB AND MOUCHEL WOULD WELCOME TEXT OF GOVERNOR'S STATEMENT ON LAN TAU ISLAND IF STATEMENT WAS MADE.

5. LAZARDS HAVE HAD DISCUSSION WITH MILLS, LONDON MANAGER HONG KONG SHANGAI BANK ON HONG KONG DOLLARS. MILLS TELEXED BOYER WHO HAS INVITED TEAM TO SEE HIM MONDAY 8 AUGUST AT 11 AM. IN LIGHT OF THIS COULD YOU ARRANGE MEETING WITH HADDON CAVE ON THAT MONDAY AFTERNOON ORPREFERABLY, MORNING OF TUESDAY 9 AUGUST. LORD KINDERSLEY AND GEMMILL DEFINITELY COMING: ECGD AND I MIGHT COME AS WELL. (KINDERSLEY WILL BE CONTACTING HADDON CAVE SEPARATELY TO TRY TO ARRANGE PRIVATE DINNER WITH HIM DURING KINDERSLEY'S STAY.) I WILL CABLE YOU LATER ABOUT HOTEL BOOKINGS.

6. KADOORIE SAW PRIME MINISTER TUESDAY. MAIN POINT OF CONCERN THAT AROSE WAS THAT PRIME MINISTER INDICATED THAT

AS CEGB TEAM ONLY JUST RETURNED AND AS OUR PRICE DEPENDS HEAVILY UPON HK DOLLAR DISCUSSIONS WE MIGHT NOT BE ABLE TO MEET MID AUGUST PRESENTATION DATE. ALSO, MINISTERS AND MANY SENIOR OFFICIALS WILL NOT BE AROUND IN AUGUST AND IT MAY BE DIFFICULT TO OBTAIN CLEARANCE TO ANY SPECIAL FEATURES IN OUR PROPOSALS. WE ARE MORE LIKELY TO MAKE PRESENTATION IN SEPTEMBER. SIR LAWRENCE TOLD PRIME MINISTER, AND REPEATED OPINION TO OFFICIALS, THAT THIS NOT CRUCIAL SO LONG AS PRESENTATION NOT DELAYED UNNECESSARLY AND SO LONG AS HMG IMPRESSES ON CLP/PEPCO THAT WORK IS PROCEEDING WITH ALL SPEED IN ENGLAND. I SHOULD BE GRATEFUL IF YOU WOULD SIMILARLY PREPARE THE GROUP FOR SOME INEVITABLE SLIPPAGE WHILE EMPHASISING THAT WE ARE IN FACT WORKING VERY HARD ON THE PACKAGE AND ARE AWARE OF CLP/PEPCO'S OWN TIGHT TIME CONSTRAINTS. WE SHALL PRESENT PACKAGE AS SOON AS WE CAN AND SHALL NOT REPEAT NOT WAIT TILL SIR LAWRENCE RETURNS TO HONG KONG. GRATEFUL IF YOU COULD KEEP US INFORMED OF CLP/PEPCO REACTIONS. RECORDS OF WILLIAMS/KADOORIE AND PM/KADOORIE MEETINGS ALREADY SENT BY BAG.

MACDONALD IC2

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