C.C.
4
CONFIDENTIAL
ENTIAL
2.
When I probed for the reason for HKE's decision, he somewhat reluctantly told me that the Mitsubishi bid was 60% below NEI's bid; Brown Boverie had been even further out. I asked whether HKE had yet been allocated a site by the Hong Kong Government. He said that a reply was still awaited but they were hoping that it would be at the South side of Lamma Island even though this would mean an expensive submarine transmission link.
4. I remain sceptical about the whole operation. I just do not believe that NEI prices can be so far above those of the Japanese and I continue to suspect an ulterior purpose. I find it odd that there has been no publicity of the award beyond the enclosed article in Asian Business which has since been brought to my attention. Certainly the Hong Kong Government were unaware of it until yesterday when Peter Williams, Chairman of Hong Kong Electric, broke the news to Jeaffrason!. I also find it difficult to believe that 'NKE ware able to complete a proper examination of such a sophisticated project in the space of some six weeks from submission of tenders and wonder why Peacock should have deliberately used the term "Contract Letters" instead of "Letter of Intent". I believe that the award to Mitsubishi is designed to put pressure on the Hong Kong Government to grant a site. David Jeaffreson was angry that they were not informed in advance and I suspect that the Hong Kong Government are making a further attempt to bring about some kind of accommodation between HKS and CLP. I shall keep my ears to the ground but thought it important to get this news away to you by this week's bag so that I can supplement the story by telegram as it unfolds.
5. You may also like to know that in a private conversation S.L.Chen of HKE told me that the Parsons people were annoyed that we and HMG had given so much support to GEC's bid for the CLP station. Ashworth, the local Reyrolle Parsons representative, has made no attempt to contact me since his call with Packard, Sales Director, at the beginning of October (see CREDA 204 of 7 October). I do not know whether Reyrolle are aware of Peacock's story that they were 60% above Mitsubishi prices (even though their technical specifications seem to have met the bill). I am wondering whether the 60% figure is designed to be used as a condemnation of CLP's negotiated deal with HMG. If it is, perhaps we should consider being in a position to expose the plot by being prepared to publish NEI's bid and showing how unrealistic it would be for Mitsubishi to offer such a low price. Perhaps you would like to brood about this?
W.Finch, Esq.,
MEPT, DUI.
J.C.Priston, Esq.,
CRE 4, DOT.
J.A.5.Stewart, Esq., OBE,
R.K. & General Dept., Fco.
Enc.
D. H. Harch
CONFIDENTIAL
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