TNAG-0638-FCO40-786-Supplies-of-electricity-for-Hong-Kong-1977 — Page 205

205

CONFIDENTIAL

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thanks Дри

A J Mac Donald Esq Room 610

Department of Industry

A.KK. 164

1 Victoria Street

REGIIVAL IN MOwra

LONDON S.W.1.

16 SEP 1988

OLSK INDEX

Taken

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12 September 1977

(w/204)

HONG KONG POWER STATION PROJECT

1. We spoke about the proposed draft letter to be sent by the Prime Minister to Sir Lawrence Kadoorie which you enclosed with your letter of 9 September to John Stewart.

2.

I pointed out that the Governor had written to Donald furray in connection with the forthcoming bilateral negotiations between the EEC and Hong Kong urging that Hong Kong's position be protected. I enclose a copy of this letter from which you will note that the Governor links the bilateral negotiations with the China Light and Power project and intimates that if Hong Kong's position on textile exports is not protected then we might lose the power station project.

3. My fear is that if the Prime Minister should now write to Dir Lawrence Kadoorie, as you suggest, then this would provide an opportunity for Sir Lawrence and the Governor to come back at the Prime Minister over the textile issue.

4. You pointed out that it was important that the Prime Minister should continue to demonstrate his concern over this project in order to help Sir Lawrence to overcome opposition on the CLP Board, but agreed to reconsider in the light of my comments.

cc: Mr Stern EID(E)

T Duffy

Hong Kong & General Department

CONFIDENTIAL