TNAG-0767-FCO40-971-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 118

HOFO 011/30

RR L 1

HKK Luft..

RECAY

INDEX

احمد

31 MAY 1978

PA

10.91

124

X-3

2129

Акай

TRY

Token

(2) TREN

GR 175

CYPHER/CAT A

FM BTC HONG KONG 300843Z

CONFIDENTIAL

امد

по

TO ROUTINE D.0.1 TELNO.INDUS 60 OF 30 MAY 78.

W/R

YOUR TELNO.INDUS 117: POWER STATION UNITS 3 AND 4.

FOLLOWING IS TEXT OF RESPONSE FROM SLR SIDNEY GORDON:-

NIR

"'VERY MANY THANKS FOR YOUR LETTER OF 29TH MAY, CONVEYING THE MESSAGE FROM JOHN LIPPITT TO SIR LAWRENCE.

I HAVE TWO INITIAL REACTIONS:

(A)

I AM NOT CLEAR HOW, IN PARAGRAPH D, THE FIGURE OF £66,090,500 (66,090,500) BECOMES £75,158,438 (75,158,438) IF

PRESUMABLY THE BASE DATE IS BEING TAKEN AS 30TH JUNE 1977.

G

THE LATTER FIGURE INCLUDES ESCALATION FROM 1ST JULY 1977 TO SOME DATE IN 1978 AND PERHAPS YOU COULD LET ME KNOW WHAT

I DO, OF COURSE, PERIOD IS COVERED BY THIS ESCALATION. APPRECIATE THAT PART OF THE DIFFERENCE IS MADE UP BY THE COST RELATING TO THE FINANCING.

(B) THERE SEEMS LITTLE HOPE OF ANY ACCEPTANCE BY US BY

30TH NOVEMBER 1978. WE WILL REVERT TO THIS POINT IN DUE COURSE.

I HAVE TAKEN THE LIBERTY OF PASSING COPIES OF YOUR LETTER TO DEAN BARRETT AND TO ROY SMITH AND WE SHALL DO SOME PRELIMINARY WORK ON IT BEFORE SIR LAWRENCE RETURNS FROM HIS CHINA VISIT. NO DOUBT HE WILL WISH TO WRITE DIRECTLY TO JOHN LIPPITT.

ENDS

MARCH

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