TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 138

HONG KONG PROJECT: PUBLICITY

We propose that on an agreed date in January:

i

ii

iii

China Light and Power/Exxon should announce in Hong Kong that it had placed a Letter of Intent with GEC;

GEC should announce by way of a press statement that it had received a Letter of Intent worth more than £x7

that that Babcock and Wilcox and Mouchel and Partners

were. its main sub-contractors. Several weeks of detailed contractual negotiation lay ahead but GEC hoped to

This

sign a formal contract by the end of March. contract had considerable employment-saving implications especially in Scotland and Northern Ireland;

An unattributable press briefing should be taken in London by Mr Lippitt at which Mr Davidson and Mr Scott (GEC); Lord Kindersley and Mr Gemmill (Lazards) and Mr Macdonald (Industry) should also be present.

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2 For the press briefing the Department would provide an off-the-record background note which indicated that the full story of the winning of the contract had several unique features:

Sir Lawrence Kadoorie, chairman CLP, had come to see the Prime Minister on 30 March 1977. He had

said that CLP and Exxon wished to buy British equipment by negotiated contract (without going to international tender) as had been its past practice. Nevertheless, current prices being quoted by other countries made this very difficult. He was therefore looking to the Prime Minister to make it possible for CLP/Exxon to buy British;