TNAG-0759-FCO40-963-Manufacture-and-storage-of-explosives-in-Hong-Kong-1978 — Page 41

Mr G Barnes

29 September 1977

2.

a.

1.

2.

3.

Suitability and Acceptability of Product

We can supply the information requested, but it is important that this should not be restrictive as regards future operations. The science of slurry explosives is an evolving technology, and there are for example some interesting new developments in the field of using amines, esters, alcohols etc, which may turn out to have substantial advantages over all existing products.

The information concerning the tests carried out in Hong Kong has been reported upon previously and can be supplied again as required.

Again we can provide this information although this may take a little time because of the need to approach our associated companies and collect the information from a variety of sources.

This can be provided along with the information requested in paragraph a.2.

C.

d.

Safety Record of Product

The information concerning accidents with the type of product we propose to manufacture can be supplied so far as this is available to us.

Again, there is some difficulty because the use of slurry explosives is now widespread, and all the information concerning accidents in manufacture, storage, transportation, and handling is not necessarily available to us. There are also many varieties of slurry explosives which are proprietary products. In general they have an outstanding safety record and there is a close resemblance in formulation between many of them.

Time Needed for Manufacture

I think that as regards this section, we would be prepared to abide by any reasonable conditions imposed by the lease, although as I think I mentioned in an earlier letter, we would require to have some provision for release through a force majeure clause, covering circumstances beyond our control.

Again I would suggest that from the Government's point of view this is perhaps an unnecessary condition, since the manufacturer once he was committed to a substantial capital expenditure would wish to generate the maximum sales revenue as quickly as possible.

Product Price

Without any protection being afforded to the local manufacturer through such mechanisms as tariffs on imported supplies etc, it is difficult to see what considerable advantage he would hold over competitors. Indeed,/