TNAG-0638-FCO40-786-Supplies-of-electricity-for-Hong-Kong-1977 — Page 86

DEPARTMENT OF INDUSTRY Í VICTORIA STREET

LONDON SWIH DET

TELEPHONE DIRECT LINE 01-215 5040

SWITCHBOARD 01-215 7877

Sir Lawrence Kadoorie CBE, KSt J(A), LLD, JP

Chairman

China Light and Power Ltd

St Georges Building

Hong Kong

New Só Lawrence,

PROJECT 77

18 November 1977

During our discussions in Hong Kong last month, we recognised that freight costs represented the one area of our proposals where I might yet manage to arrange special features in the context of the British package. I am pleased to say that my Department has succeeded in arranging unique terms for the carriage of the equipment to Hong Kong. I am sure you will agree that the reduction of over 40 per cent in these costs which has been achieved (as indicated in the attached material) is highly satisfactory.

We also agreed last month that it would be helpful if CJP staff were to come to the UK for further technical discussions. Your staff have had most useful meetings both with the CEGB and the contractors. In the light of discussion, both in Hong Kong and in the UK, we have listed and priced a number of additions to the scope of equipment set out in our original proposals. We have also described arrangements which enable CLP/PEPCO to exercise a choice of supply on certain defined items of equipment. Moreover, we have indicated a number of possible design arrangements with attendant costs which may be of interest to you. All the additions to our original proposals are given in the attached volumes.

We are in close touch with your financial advisers on the few unresolved financial matters you raised in Hong Kong and the CEGB is preparing an estimate of the likely cost of the additional services you may require from them.

I look forward to discussing these and other matters with you in Hong Kong. We have arranged for the contractors to be available for discussions with CLP/PEPCO from Thursday 8 December and for the rest of the British team to be available from Monday 12 December. appreciate it if you would let Derek March know if this is in accordance with your wishes.

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