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(E) SUB PARA 7. WE SUGGEST SUBSTITUTION OF 'CLP/ESSO WERE NOW CONSIDERING SOURCES OF COAL FOR THE NEW POSWER STATION. THEY
ESTIMATE THAT SOME THREE AND ONE HALF MILLION TONS PER YEAR
WILL ULTIMATELY BE REQUIRED. DISCUSSIONS HAVE BEEN INITIATED WITH
POTENTIAL SUPPLIERS INCLUDING THE PEOPLES REPUBLIC OF CHINA'
COMMENT- THIS REMOVES THE IMPLICATION THAT THREE AND ONE HALF
TONS IS NEEDED IMMEDIATELY.
(F) WE HOPE YOU WILL ADD REFERENCE TO TRADE OPPORTUNITIES. SEE PARA 3(D) OF MY INDUS 8.
3. QUESTION AND ANSWERS. (YOUR PARA 6)
(A) QUESTION 1.
WE THINK IT MORE TRUTHFUL TO SAY THAT THE PRIME MINISTER
MET SIR LAWRENCE KADOORIE TWICE DURING 1977''.
(B) QUESTIONS 2, 3 AND 4. NO COMMENT.
(C) "QUESTION 5.-
WE SUGGEST SUBSTITUTION OF FOLLOWING ANSWER:-
''AS WOULD HAVE BEEN EXPECTED, CLP/ESSO RECEIVED ENQUIRIES ABOUT
THE NEW POWER STATION FROM A NUMBER OF INTERNATIONAL SUPPLIERS. CLP/ESSO HAVE PURCHASED BRITISH EQUIPMENT BEFORE AND HAVE BEEN WELL SATISFIED WITH IT. THERE WERE, THEREFORE, OBVIOUS OPERATIONAL ADVANTAGES TO CONTINUING TO DO BUSINESS WITH HISTORICAL SUPPLIERS
PROVIDED THEY COULD MEET THE TEST OF PRICE COMPETITIVENESS.
INDEPENDENT CONSULTANTS HIRED BY CLP/ESSO COMMENTED THAT THE
PACKAGE WE PUT FORWARD WAS TECHNICALLY ACCEPTABLE AND COMMERCIALLY
COMPETITIVE.''
COMMENT THIS WORDING REMOVES EMOTIVE REFERENCE TO TRADITION
BUT ADMITS TO A FACTUAL HISTORY OF PURCHASE FROM THE UK. THE
ELIMINATION OF KEEN'' IN EXCHANGE FOR AN EXPRESSION OF
SATISFACTION WITH PAST PURCHASES SEEMS A MORE ACCURATE EXPRESSION
OF CLP'S MOTIVES AS WOULD BE UNDERSTOOD BY CRITICS.
(D) QUESTION 6.
WE SUGGEST SUBSTITUTION OF FOLLOWING ANSWER.
''IF ACCEPTED THEY WOULD HAVE ALLOWED THE NEW COMPANY BEING
FORMED BY CLP/ESSO TO MINIMISE THEIR FOREIGN EXCHANGE RISK.
AFTER CONSIDERING BENEFITS AND COSTS, HOWEVER, CLP/ESSO HAVE DECIDED NOT TO PURSUE THIS PROPOSAL.''
COMMENT CLP CONSIDER THAT THIS TREATS THE ISSUE AS DECIDED AND
INDICATES THAT THE REASON FOR IT WAS ECONOMIC. CLP WILL BE
RESPONSIBLE FOR ANWERING ANY QUESTIONS AS TO WHY THE DECISION WAS
TAKEN.
(E) QUESTION 7.
COAL FROM CHINA. SEE PARA 3(C) OF MY INDUS 8.
(F) WE SUGGEST A NEW QUESTION 8.
**HAS HMG CONSULTED THE HONG KONG GOVERNMENT ?''
THEY NOVG, DIEN KERT, LEORMED OF DEVELOPMACAT LA
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