TNAG-0638-FCO40-786-Supplies-of-electricity-for-Hong-Kong-1977 — Page 164

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CONFIDENTIAL

Ajale

Mr Murray

31/10

HONG KONG: CHINA LIGHT AND POWER PROJECT

1. Mr Lippitt and a team from the Department of Industry were present in Hong Kong during my recent visit. I did not feel it proper or necessary to be concerned although at one stage I was asked indirectly for a description of the British Government's position on the relationship between Hong Kong and China.

2. However, I did discuss with the Governor and the Senior British Trade Commissioner the prospects of a successful bid by the British companies. Mr March was very optimistic and said that, in his opinion, we were now almost certain to get the contracts. The Governor was very much less hopeful and said that although Sir Lawrence Kadoorie was still on our side one member of the Board has certainly come out against the British proposal and all the members of the Board were disappointed by the proposed costs of the new equipment.

27 October 1977

CC:

Mr MacDonald (IC2, DOI) Mr Quantrill

CONFIDENTIAL

JA B Stewart

Hong Kong & General Department