TNAG-0768-FCO40-972-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 141

From the

Minister of State

Rt Hon Alan Williams MP

Nick Sanders Esq

Private Secretary to the

Prime Minister

10 Downing Street

LONDON SW1

Dear Nich

SIR LAWRENCE KADOORIE

813

Department of Industry

217

1 Victoria Street London SWIH OET

Mr

Пудирам 'No comments.

Telephone Direct line

5147

01-215 Switchboard 01-215 7877

861518

16 August 1978

HKAD

Cc as

for

S

PS

izle

PS. hard honey Robots

Wedas 11/8

B. Pus

Mr Cartazz-HKK 1604/1 Mr MURRAY"

RECEIVECY NO. 51

FED TRED

978

M OFFICER

REGISTRY

INDEX

PA

Action Takan

?

Thank you for your letter of 9 August enclosing one from Sir Lawrence Kadoorie to the Prime Minister about progress on the package deals of heavy electrical equipment this Department is preparing on behalf of the Government for offer to various subsidiary companies of the China Light and Power Company in Hong Kong.

Sir Lawrence refers to the transmission system package.

We shall

be sending out the offer for this to Hong Kong in the next week or so. Certain problems on the security of the purchaser remain but discussions between this Department, Lazards, ECGD and Sir Lawrence's financial advisers are continuing and we are hopeful that a modus vivendi will be found.

He also refers to the doubling of the present capacity of the Castle Peak generating station for which GEC are contracted to supply the first two units. We have presented Sir Lawrence with an offer but whether we can meet Sir Lawrence's detailed requirements on timetabling depends on decisions on the continuance of the cost escalation scheme which have yet to be taken.

As far as Sir Lawrence's Chinese interests are concerned, I understand that the Secretary of State for Trade, during his recent visit to Peking, emphasised to the Chinese Minister for Trade HMG's full support for Sir Lawrence's electrification proposals which the Chinese are now considering.

I attach a draft reply for the Prime Minister to send Sir Lawrence. You might wish to amend the terms of the last sentence about a possible future meeting between the Prime Minister and Sir Lawrence.

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