TNAG-0638-FCO40-786-Supplies-of-electricity-for-Hong-Kong-1977 — Page 8

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CONFIDENTIAL

S

2.

while the whole of the UK manages with one. I have to be most circumspect in reporting blow by blow developments in this fascinating saga which is basically a tactical battle between three parties the H.K. Government, the Kadoorie interests of CLP and the traditional Hongs who own HKE. So much is rumour and half-truth but MEPT can take it that for the purposes of British companies bidding for the HKE power station project no site has been approved and I am increasingly coming round to the view that they will not get one. Indeed, some outside observers say that the application has been refused but I personally do not think that the Government has yet acrewed up courage to state this formally to IKE even though they may have given an indication of the way their minds are moving.

4. I am sending a copy of this letter to Christopher Priston in CREA and to John Stewart in the FCU. I enclose an extra copy for NEPT if you would like to pass it on and perhaps fill in some of the background to which I alluded in paragraph 1.

C.C.

Mr.

Havelock,

HEPT, DUI.

J.C. Prin, Esq., CRE 4, DOT.

J.AB. Stewart, Esq., OBE,

́K & General Dept., F.C.U.

Enc.

D. M. March

CONFIDENTIAL