TNAG-0638-FCO40-786-Supplies-of-electricity-for-Hong-Kong-1977 — Page 193

DRAFT

Sir Lawrence Kadoorie Esq CBE, K St (J)A, LLD, JP Chairman

China Light and Power Company Ltd

St Georges Building

Hong Kong

PROJECT 77

Following China Light and Power/PEPCO's approach earlier this year, and your own discussions with the Prime Minister and my Minister of State, Mr Alan Williams, I am delighted

to present the Government's proposals for your consideration.

I believe that the Government has responded fully to your request for an imaginative approach and is putting forward proposals which, if considered as a whole, are of great potential benefit to CLP/PEPCO. In particular:-

the Department of Industry has taken the lead, for the first time in any such case, in the preparation of the proposals. The Department has nominated

the individual companies and has taken steps to

ensure that their proposals are technically sound and their prices internationally competitive;

the Department is making available, at no cost to CLP/PEPCO, the services based on an unrivalled experience of the Central Electricity Generating

Board;

Jabat

the Department is proposing special financing arrangements which, we consider, could not be obtained elsewhere.

in the world. These should be highly beneficial

to CLP/PEPCO and attractive to the Hong Kong community;