TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 131

CONFIDENTIAL

CHRODERS WILL TAKE OVER CONTROL OF THE BUYER CREDIT FACILITY.

I AM CONFIDENT YOU WILL AGREE THAT IN THE CIRCUMSTANCES THIS IS -

THE BEST WAY OF PROCEEDING.

WITH ALL GOOD WISHES FOR THE NEW YEAR.

IN PRESENTING LETTER TO KADOORIE PLEASE EMPHASISE:

I LIPPITT APOLOGISES FOR DELAY IN REPLYING BUT HE FELT IT

PERSONALLY ESSENTIAL TO GET ARRANGEMENTS RIGHT:

11 THESE ARRANGEMENTS ARE DIFFERENT FROM USUAL E C G D METHOD

WHEREBY CONTRACTOR, LEAD BANK AND E C G D NEGOTIATE ROUND TABLE. IF THIS WAS A NORMAL EXPORT CONTRACT WHICH HAD NO UNUSUAL FEATURES THERE IS NO REASON WHY SCHRODERS SHOULD NOT REPEAT NOT BE NOMINATED AT THIS STAGE. BUT THE CIRCUMSTANCES OF THIS CONTRACT ARE VERY SPECIAL AND WE NEED TO HAVE DIFFERENT ARRANGEMENTS. WE HOPE SIR LAWRENCE WILL APPRECIATE WHY THIS HAS TO BE SO, AND THAT HE SEES ADVANTAGE IN THIS DEPARTMENT

BEING IN THE LEAD:

111 UNDER OUR ARRANGEMENTS CLP/EE WILL ODTAIN SUBSTANCE OF WHAT

THEY WERE SEEKING SCHRODERS WILL PUBLICLY BE SEEN AS MANAGERS

AND AGENTS OF THE LOAN.

FILES

FI & GD (5)

FED

TRED

FRD

PS

[COPIES SENT TO DEPT OF INDUSTRY)

PS/NR JUDD

PS/LORD GORONWY ROBERTS PS/PUS

MR CORTAZZI

ME BUTLER

MR MURRAT

ME FOSNEITT

3

CONFIDENTIAL

ADDITIONAL DISTRIBUTION

HONG KONG POWER STATION

PROJECT