TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 76

HKK 164/1.

34

PP BTC HONG KONG

GR 250A

CYPHER/CATA

FROM D T | 301723Z

CONFIDENTIAL

DES. INDEX

-

ср.

No las & Doi/Dece

R129

TRED (2)

Jeels

H.KED

TO PRIORITY BTC HONG KONG TELNO INDUS 33 OF 38 JANUARY

ESS D

FROM MACDONALD IC2.

POWER STATION PROJECT.

See 38

PLEASE INFORM STONES THAT THE DEPARTMENT HAS RECEIVED GEC ERECTION PACKAGE FOR FORMAL SUBMISSION TO CLP/ESSO. WE PROPOSE ASKING CONSULTANTS TO ADVISE US WHETHER THE PRICE IS INTERNATIONALLY

COMPETITIVE: IT WILL THEREFORE BE SOME WEEKS BEFORE A FORMAL PROPOSAL IS PUT BY THE DEPARTMENT TO CLP/ESSO.

2. FOR YOUR INFORMATION: GEC GAVE STONES A COPY OF PROPOSALS LAST WEEK AND STONES COMMENTED - BOTH TO GEC AND TO DEPARTMENT

THAT

THE PRICE WAS TOO HIGH. AS OUR STRATEGY THROUGHOUT HAS BEEN BASED ON SUBMISSION OF PRICES IN WHICH DEPARTMENT HAD CONFIDENCE, WE CONSIDER IT PREFERABLE TO CONDUCT REVIEW. THIS WILL UPSET CLP/ESSO TIMETABLE FOR CONSIDERATION OF THEIR POLICY OPTIONS (FULL GEC ERECTION OR GEC SUPERVISION OF ERECTION) FOR WHICH WE APOLOGISE. BUT IN OUR VIEW IT WOULD HAVE BEEN WORSE IF STONES HAD TOLD CLP/ESSO THAT UK PRICE WAS TOO HIGH, FOR THIS WOULD HAVE DAMAGED OUR CREDIB- ILITY.

3a SEPARATE TO THIS, PLEASE ASSURE STONES WE ARE NOW ON RIGHT LINES

ON TRANSMISSION PACKAGE. BUT CAN WE KNOW:

(1) WHETHER HMG CAN HAVE BY DIPLOMATIC BAG A COPY OF THE TECHNICAL

GUIDANCE IN CLP'S FULL DEVELOPMENT PLAN? WE WERE SENT AN OUTLINE

IN NOVEMBER BUT THE DOCUMENT STONES HAD IN LONDON LAST WEEK SEEMED FAR MORE DETAILED:

(11) WHETHER CLP WOULD PREFER BALFOURS TO BID FOR THEIR PART OF THE

PACKAGE SEPARATE FROM THE SUB-STATIONS OR WHETHER CLP WANTS A SINGLE BID FOR THE ENTIRE PACKAGE? (IT WILL OF COURSE TAKE SOME

TIME TO PUT THE FULL PACKAGE, INCLUDING SUB-STATIONS, TOGETHER).