TNAG-0767-FCO40-971-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 22

11. THIS ACCENTUATES THE NEED FOR HONG KONG'S LONG TERM INTERESTS TO BE KEPT IN MIND, AND THE HEAVY RESPONSIBILITY IT PLACES UPON US TO MAINTAIN THE LEAD THROUGH PROJECT 77.

12. THE PROPOSAL TO SUPPLY CO AL HANDLING, TRANSPORT AND LOADING

FACILITIES (ALL OF WHICH REQUIRE A CONSIDERABLE AMOUNT OF MECHANICAL EQUIPMENT) ON A COMPENSATORY BASIS WAS ORIGINALLY MADE ON OUR BEHALF BY SIR EDWARD YOUDE IN JULY 1977. OUR RELATIONSHIPS WITH THE NATIONAL COAL BOARD OF U.K, THE DEPARTMENT

OF INDUSTRY OF THE BRITISH GOVERNMENT AND THE BRITISH MANUFACTUREIG ARE SUCH THAT WE BELIEVE WE CAN QUICKLY REACH A POSITION WHEN WE COULD COLLECTIVELY MAKE A PACKAGE PROPOSAL.

13. IN CRDER NOT TO DELAY MATTERS, THE EHV LINE FROM SHUM CHUN TO

SHEK LOONG COULD BE FINANCED IN THE FOLLOWING MANNER:

(1) THE D.0.1, POSSIBLY USING THE JOINT COMPANY I HAVE PROPOSED ABOVE, COULD PROVIDE THE NECESSARY TRANSFORMERS, TOWERS, CABLES SWITCHGEAR, ETC., FROM BRITISH SUPPLIERS AT COMPETITIVE RATES. (11) A DETAILED TRANSMISSION AND DEVELOPMENT REPORT SHOULD BE SUBMITTED WHICH WOULD INCLUDE THE ESTIMATED COST FOR (?) MILES

OF 460 KV LINE FROM SHUM CHUN TO SHEK LOONG,

(111) A DETAILED SPECIFICATION OF A TYPICAL SUB-STATION AND THE NECESSARY TRANSFORMERS AND SWITCHGEAR REQUIRED TO STEP DOWN THIS VOLTAGE TO 222KV AT SHEK LOONG.

(IV) PLANS FOR PARA.5(1) ABOVE - RURAL ELECTRIFICATION.

14. EXPERTISE AND ENGINEERING SERVICES IN SURVEYING AND DESIGNING THE LINE COULD BE SUPPLIED BY THE CECB WHO WOULD PLACE THEIR

COMPREHENSIVE FACILITIES AT THE DISPOSAL OF THE ENGINEERS OF THE

KWANGTUNG ELECTRICAL INDUSTRY BUREAU FREE OF COST.

15. AS PART OF THE PROJECT, BRIDGING FINANCE WOULD HAVE TO BE

ARRANGED BY THE BRITISH GOVERNMENT. EVENTUAL REPAYMENT FOR THE COST OF THE LINE TO BE MADE BY THE CHINESE EITHER IN THE FORM OF COAL TO BE SUPPLIED TO KESCO IN DUE COURSE, OR BY THE SUPPLY OF COAL IMMEDIATELY TO THE NEW COMPANY TO WHICH I HAVE REFERRED IN PARA.9 HEREIN FOR RE-SALE. IN THIS CONNECTION WE HAVE NOTIFIED SCHRODER WAGG IN LONDON THAT WE SHALL CALL UPON THEM TO ORGANISE THE NECESSARY FINANCIAL ARRANGEMENTS.

ENDS

MARCH

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