TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 90

ZZ BTC HONG KONG

GR 190..

CYPHER CAT A

FM DTI 191338Z

AKSO

tere

24

TRED (2)

HIC

51

JAN 1978

PERK OFFICE

RE

INDEX

No

CONFIDENTIAL

TO FLASH BTC HONG KONG TELNO INDUS 23 OF 19 JANUARY POWER STATION PUBLICITY

QUESTIONS RAISED BY PRESS WERE GENERAL AND MAINLY RELATED TO SUBJECTS OF LITTLE CONCERN TO CLP/PEPCO EG JOB IMPLICATIONS: ANY ROLE FOR NEB: DRAX B: PRIME MINISTER'S INTEREST: WOULD HMG DO THIS AGAIN FOR OTHER CONTRACTS ETC.

2. SPECIFIC QUESTIONS OF INTEREST TO CLP/ESSO WERE:

I WERE CLP/ESSO OFFERED US DOLLARS OR STERLING OR SOME OTHER

CURRENCY? LIPPITT SAID THAT THE PROPOSALS OFFERED

US DOLLARS OR HONG KONG DOLLARS AND THAT CLP/ESSO HAD CHOSEN

US DOLLARS:

II DID MFA DIFFICULTIES RESULT IN ANY THREATS TO CANCEL

NEGOTIATIONS? NO:

111 HOW FAR HAVE TALKS GONE ON CHINESE COAL? NOT BEYOND A STATEMENT

OF WILLINGNESS TO CONSIDER POSSIBILITIES:

IV DID OTHER COUNTRIES TRY TO UNDER-CUT BRITISH PRICES? THEY

WERE NOT OFFERED AN OPPORTUNITY TO DO SO:

V WHAT WAS ESSO'S ROLE? AS 60 PERCENT SHAREHOLDERS THEY WERE

FULLY INVOLVED:

VI WILL A SIMILAR PACKAGE BE PUT IN FOR UNITS 3 AND 4? YES: VII WILL LONDON CLEARING BANKERS BE FULLY INVOLVED IN THE SYNDICATE?

WE WOULD EXPECT SO:

VIII DID THE CONTRACT INCLUDE PROVISION FOR COST ESCALATION?

YES BUT THE DETAILS ARE OF COURSE COMMERCIALLY CONFIDENTIAL: IX WHO WILL DO WORK ON SITE? THIS IS A VERY COMPLICATED MATTER

AND DISCUSSIONS ARE CONTINUING WITH CLP/ESSO ON THIS.

3. NO QUESTIONS AT ALL WERE ASKED ABOUT CEGB.

Page 90Page 91