TNAG-0638-FCO40-786-Supplies-of-electricity-for-Hong-Kong-1977 — Page 221

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30 AL 1988

RR SAN FRANCISCO

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GRS 370

CYPHER/CAT A

FM DTI 261735Z

CONFIDENTIAL

TO PRIORITY WASHINGTON TEL NO CREDA 309 OF 26 AUGUST

INFO SAN FRANCISCO

1. LIPPITT DOI HAS REQUESTED THAT YOU ARRANGE VIP TREATMENT FOR SIR

LAWRENCE AND LADY KADOORTE DUE TO ARRIVE IN SAN FRANCISCO FROM RIO DE JANEIRO ON 9 SEPTEMBER AT 10.55 AND STAYING AT FAIRMONT HOTEL, 950 MASON STREET. HE IS ATTENDING CONFERENCE AT STANFORD RESEARCH INSTITUTE, WHO WILL, WE UNDERSTAND HEET ON ARRIVAL. SIR LAVRENCE IS, INTER ALIA, CHAIRMAN OF CHINA LIGHT AND POWER CO WHICH WITH ITS ASSOCIATE, PENINSULAR ELECTRICITY POWER CO, IS A UTILITY IN HONG KONG, WHICH HAS IN PAST BOUGHT ITS POWER PLANT FROM UK. PRESENT POWER STATIONS ARE OIL FIRED BUT NEV DUAL COAL/OIL FIRED STATION IS

BEING COMMISSIONED IN 1982. THIS IS FIRST STAGE IN MAJOR

DEVELOPMENT OF DESALINATION PLANT, HARBOUR IQTALLATION AND PUMP STORAGE SCHEME. SECURING OF INITIAL POWER STATION CONTRACT WOULD

CONSIDERABLY ENHANCE CHANCES OF OBTAINING FURTHER CONTRACTS.

2. SIR LAWRENCE IS ANXIOUS TO BUY BRITISH POWER PLANT BUT IT IS

ALMOST CERTAIN THAT IN OPEN TENDER UK FIRMS WOULD DE UNDERCUT

BY JAPANESE. HE THEREFORE SEEKS NOVEL BRITIS!! PACKAGE TO PRESENT

TO HIS BOARD, IN ORDER TO PERSUADE IT TO GO FOR A NEGOTIATED

CONTRACT WITH DRITISH SUPPLIESS. HE IS LOOKING FOR STRONG HAG

INVOLVEMENT IN PACKAGE AND WAS TVICE DISCUSSED IDEAS WITH PP PHO

TAKES CLOSE PERSONAL INTEREST. ORDER IS OF PRIME IMPORTANCE TO

UK POWER PLANT INDUSTRY AND COULD SAVE (G:LO JOPS OVER MEYT TURCE

YEARS. DOI THEREFORE TAKING LEAD ROLL IN PREPARING PACKAGE,

MUCH WILL INCLUDE TENDERS FROM GEC (GENERATORD), PADCOCK AND WILCOX (BOILERS), MOUCHEL AND PARTNERS (SITE WORK), BALFOUR BEATTY (TRANSMISSION LINK), ALL OF WHO HAVE REEN NOMINATED BY DOI.

ALSO INCLUDED ARE OFFERS OF SERVICES OF CEGE AND NCB AS CONSULTANTS

AND COAL ADVISERS RESPECTIVELY, BACK UP SERVICES BEFORE AND AFTER COMMISSIONING, AND FAVOURABLE BUYER CREDIT TERMS.

3. LIPPITT PROPOSES TO PRESENT PACKAGE 14 HONG KONG IN SECOND WEEK

SEPTEMBER WITH LETTER OF RECOMMENDATION FROM PM.

4. SHOULD BE GRATEFUL IF YOU WOULD CHECK TO SEE WHETHER INSTITUTE

ARRANGING TO MEET SIR LAWRENCE AND IF NOT UNDERTAKE THIS FROM POST. ALSO TO ARRANGE TO TRANSMIT ANY MESSAGES WHICH HE WAY PAVE FOR LIPPITT OR DO1. 1', ADDITION IF OPPORTUNITY ARISES IT WOULD TE

HELPFUL IF POST COULD EMPHASISE THAT PYG VILL MAINTAIN A CLOSE

INVOLVEMENT IN WHOLE FACKAGE RIGHT THROUGH TO SUCCESSFUL

COMMISSIONING OF THE STATION.

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