GR 600
CY ER/CAT A
FM BTC HONG KONG 261047Z
CONFIDENTIAL
NO DISTRIBUTION
on
HK K 164/&
RECERY.
HKG
TO PRIORITY D.0.1 TELNO.INDUS 59 .OF 26 MAY 78
INFO D.T.
D.O.T.
(CRE4).
DESK OFFI
IN 1978 (2)
INGREN FAZ
DOT/CREA
K129
YOUR TELNO.INDUS 113: HONG KONG ELECTRIC (H.K.E).
::Y
RE Action Taken
X4
1. THERE HAS BEEN A SIGNIFICANT DEVELOPMENT IN THAT HONG KONG
GOVERNMENT HAS GAZETTED A PROPOSAL TO LEASE A SITE FOR A NEW
POWER STATION ON THE N.W CORNER OF LAMMA ISLAND SUBJECT TO
A FAVOURABLE ENVIRONEMENTAL IMPACT STUDY. THIS PROVIDES AN OPPORTUNITY FOR OBJECTIONS TO BE REGISTERED BEFORE THE
CASE IS CONSIDERED BY THE EXECUTIVE COUNCIL. AT PRESENT THERE
ARE NO SIGNS THAT A CAMPAIGN IS BEING MOUNTED TO CHALLENGE THE NEED FOR A SECOND NEW POWER STATION, AND I THINK WE MUST CONCLUDE THAT HKE WILL BE GIVEN THE GO AHEAD BY THE END OF JUNE.
MY ASSESSMENT IS THAT THE HONG KONG GOVERNMENT HAS FAILED TO FORCE A MARRIAGE BETWEEN CLP AND HKE. THE LATTER ARE NOT
INTERESTED IN A LONG TERM FUTURE AS A DISTRIBUTION COMPANY
AND THE FORMER WILL NOT LET THEM HAVE AN EQUITY STAKE IN THE
NEW CASTLE PEAK STATION.
2. I HAVE THEREFORE BEEN LOOKING AT THE OPPORTUNITIES FOR
BRITISH SALES TO HKE. WHILE IN THEORY HKE MAY BE PREPARED TO BUY SETS 3 AND 4 FROM PARSONS OR ANOTHER BRITISH SUPPLIER, WE MUST REMEMBER THAT MITSUBISHI'S OFFER FOR SETS 1 AND 2 WAS ALLEGED TO BE THIRTY PERCENT BELOW THE NEAREST EUROPEAN BID THEY MUST HAVE THE INSIDE TRACK. ON THE OTHER HAND, THE DECISION TO BUY FROM JAPAN COVERS ONLY THE BOILERS (INCLUDING COAL FEEDERS), TURBINES AND GENERATORS I.E WE CAN STILL GO FOR THE COAL HANDLING AND WASHING PLANT AS WELL AS THE TRANSMISSION LINK TO HONG KONG ISLAND.
3. COOTES OF NEI HAS BEEN HERE THIS WEEK DISCUSSING THE EHU TRANSMISSION SYSTEM WITH CLP. HE BELIEVES THAT NEI'S ICL DIVISION ARE COMPILING A BID FOR THE COAL HANDLING PLANT THEY WOULD DO WELL TO HURRY. HE WILL ALSO BE DISCUSSING THE OPPORTUNITIES FOR REYROLLE SWITCHGEAR ON THE HKE TRANSMISSION
SYSTEM.
135
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