TNAG-0767-FCO40-971-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 60

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CYPHER/CAT A

FM BTC HONG KONG 150347Z

Mr. Mykurm

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appoers, from the Hagged Ex Co Mosmaranderen on attached file, that the the Government have felt unable to Affust HKE a

siter, but Kat they now will not allow wither tka or.ezp

a new power station TO PRIORITY D.O. TELNO. INDUS 65 OF 15 JUNE 78, coltso try co-operate with

CONFIDENTIAL

INFO F.C.0 AND D.0.T.

FOR HAVELOCK, MEPT.

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(142)

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YOUR INDUS 127. HONG KONG ELECTRIC SITE.

Richel Stagn

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1. AS MY LETTER OF 19 DECEMBER WAS GRADED CONFIDENTIAL, I AM SURPRISED TO LEARN THAT THE BACKGROUND TO HONG KONG ELECTRIC'S

SITE APPLICATION WAS PASSED TO BRITISH COMPANIES. I SHALL FIND

IT IMPOSSIBLE TO REPORT ON CONFIDENTIAL EXCHANGES WITH SENIOR

HKG OFFICIALS IF THERE IS NO PROTECTION FOR THE VIEWS THEY

EXPRESS OR MY INTERPRETATION OF THEM. IN THIS INSTANCE MY

LETTER UNDERLINED THE POLITICAL SENSITIVITY OF THE ISSUE AND I

WAS CAREFUL TO SET OUT THE FORMAL POSITION (1.E THAT HKE HAD NOT HAD A REPLY TO THEIR REQUEST) FOR USE IN PUBLIC.

2. STRICTLY FOR YOUR OWN INFORMATION, THERE.HAS BEEN A REAL EFFORT BY THE HKG TO BRING ABOUT A MARRIAGE BETWEEN CLP AND HKE IN ORDER TO AVOID A SECOND POWER STATION. BUT KADOORIE WOULD NOT AGRES TO HKE HAVING EQUITY IN HIS POWER GENERATION BUSINESS ALTHOUGH HE WOULD HAVE BEEN GLAD TO SELL THEM POWER. HKE OF COURSE RECOGNISED THAT THIS WOULD MEAN THE END OF THEIR INDEPENDENCE

AS A SEPARATE POWER GENERATION COMPANY AND WILL NO DOUBT HAVE TOLD THE GOVERNMENT THAT THEY COULD NOT GUARANTEE SUPPLY WITHOUT A NEW STATION FOR THE MID 1980S. AT THE END OF THE DAY (IN SPITE OF WHATEVER THE GOVERNOR MAY HAVE TOLD SIR P. CAREY IN A CONVERSATION WHICH WAS NOT REPORTED TO US) THE HONG KONG GOVERNMENT APPEAR TO HAVE DECIDED THAT ALTHOUGH THIS WILL BE THE LAST MAJOR POWER GENERATION DEVELOPMENT SANCTIONED FOR

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