LAZARDS, ECGD AND BEI/CEGB. THE CONTRACTORS HAD ANSPERED MORE THAN 600 TECHNICAL QUESTIONS RAISED BY CLP/EXXON: ALTOGETHER,
GEC'S PROPOSALS COVERED 17 VOLUMES:
GEC HAD RECEIVED A LETTER OF INTENT IN RESPECT OF 2 X 350 MW
TURBINE GENERATORS AND BOILERS AND ALL ASSOCIATED ANCILLARY PLANT. THE POWER STATION WILL ULTIMATELY HOUSE 4 X 350 MW GENERATING UNITS. IN ADDITION, TALKS WERE STILL PROCEEDING IN HONG KONG ON PROPOSALS FOR ADDITIONAL EQUIPMENT AND EXTRA SERVICES: FULL ERECTION BY GEC OF THE EQUIPMENT THEY WERE PROVIDING AND ON A TRANSMISSION LINK BETWEEN THE POWER STATION AND CLP'S EXISTING TRANSMISSION SYSTEM. BALFOUR BEATTY WERE THE LEAD COMPANY FOR THE LATTER ASPECT OF THE DEVELOPMENT.
CLP/EXXON WERE NOW CONSIDERING SOURCES OF COAL FOR THEIR NEW POWER STATION. THEY ESTIMATE THAT SOME 3-1/2 MILLION TONS PER YEAR WERE NEEDED. DISCUSSIONS HAVE BEEN INITIATED WITH POTENTIAL SUPPLIERS, INCLUDING THE CHINESE.
6. QUESTIONS WOULD THEN BE TAKEN FROM THE PRESS. OUR PROPOSED ANSWERS TO SPECIFIC QUESTIONS ARE:
1. WHAT ROLE DID THE PRIME MINISTER PLAY IN THE NEGOTIATIONS?
HE MET SIR LAWRENCE KADOORIE ON SEVERAL OCCASIONS DURING 1977, AND CORRESPONDED WITH HIM. HE ALSO RECEIVED REGULAR REPORTS ON
PROGRESS FROM MR WILLIAMS.
2. WHY IS THE GOVERNMENT INVOLVED ?
DEMAND FOR POWER PLANT IS DEPRESSED BOTH AT HOME AND ABROAD AT THE PRESENT TIME AND MANUFACTURERS ARE GOING THROUGH A DIFFICULT PERIOD. THE DEPARTMENT IS NATURALLY ANXIOUS TO DO ALL IT CAN IN ORDER TO PRESERVE THE VIABILITY OF THIS INDUSTRY. THE DEPARTMENT
THEREFORE TOOK ON A CO-ORDINATING ROLE IN THE NEGOTIATIONS AS
SOON AS IT BECAME APPARENT THAT A GOVERNMENT INVOLVEMENT OF THIS KIND WAS ATTRACTIVE TO CLP/EXXON.
3. IS THE GOVERNMENT SUBSIDISING THE CONTRACT ?
CLP/EXXON WILL BE MAKING USE OF CERTAIN TECHNICAL SERVICES TO BE PROVIDED BY THE C E G B. SOME OF THE SERVICES WILL DE FUNDED BY THE HONG KONG INTERESTS BUT THE DEPARTMENT IS ALSO MAKING A CONTRIBUTION. IT WOULD NOT BE APPROPRIATE TO GIVE ANY INDICATION OF THIS AT THE PRESENT STAGE OF CONFIDENTIAL CONTRACTUAL NEG-
OTIATIONS.
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