TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 112

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CONFIDENTIAL

Pare 6.7 is as agreed

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(in essence) with el

BTC, FRY

jes The text of the

press

release + answers

to questions is a great ingrovement on the

original version.

TO PRIORITY BTC HONG KONG TELNOS INDUS 7 OF 11 JANUARY

HONG KONG PROJECT: PUBLICITY

Para 6.7 strikes me as

a very (mainly because of over-comforser

AFTER DISCUSSIONS WITH THE CONTRACTORS AND OTHER GOVERNMENT ent is it now

objectionable?

DEPARTMENTS WE ARE NOW ABLE TO PUT OUR PROPOSALS FOR PUBLICITY

TO YOU FOR DISCUSSION WITH CLP AND HONG KONG GOVERNMENT. PLEASE APOLOGISE TO SIR LAWRENCE FOR OUR DELAY.

2. IN PUTTING MATERIAL TO YOU I MUST STRESS THAT THE AREA OF GREATEST SENSITIVITY SO FAR AS WE ARE CONCERNED AFFECTS CEGE INVOLVEMENT ESPECIALLY IN RESPECT OF COST OF THOSE SERVICES. WE HOPE THAT SIR LAWRENCE KADOORIE CAN TAKE ACCOUNT OF THIS IN VIEW OF

INTERNATIONAL IMPLICATIONS.

3. IF CIRCUMSTANCES PERMIT WE WOULD LIKE TO GO PUBLIC EITHER NEXT TUESDAY 17 JANUARY OR NEXT THURSDAY 19 JANUARY. WE MUST RECONSIDER THIS IN LIGHT OF YOUR INDUS 3 JUST RECEIVED.

4. OUR GENERAL PROPOSALS ARE THAT ON THE AGREED DATE:

I CHINA LIGHT AND POWER/EXXON SHOULD ANNOUNCE IN HONG KONG THAT

IT HAD PLACED A LETTER OF INTENT WITH GEC:

11 GEC SHOULD ANNOUNCE BY WAY OF A PRESS STATEMENT THAT IT HAD

RECEIVED A LETTER OF INTENT FOR A CONTRACT WORTH ABOUT POUNDS STERLING 100 MILLION AND THAT BABCOCK AND WILCOX AND MOUCHEL AND PARTNERS WERE ITS MAIN SUB-CONTRACTORS. SEVERAL WEEKS OF DETAILED CONTRACTUAL NEGOTIATIONS LAY AHEAD BUT GEC HOPED TO SIGN A FORMAL CONTRACT BY THE END OF MARCH. THIS CONTRACT WOULD ASSIST IN MAINTAINING EMPLOYMENT IN MANY LOCATIONS INCLUDING SCOTLAND AND NORTHERN IRELAND, AREAS OF HIGH UNEM- PLOYMENT. WORK WOULD ALSO BE GENERATED IN A WIDE RANGE OF SUB- CONTRACTORS FACTORIES IN THE ENGINEERING INDUSTRY THROUGHOUT

BRITAIN.