TNAG-0768-FCO40-972-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 197

CONFIDENTIAL

5. THE REFERENCE IN THE DRAFTS TO THE PROVISION OF INITIAL ASSESSMENTS COVERS THE PAYMENT BY THE OVERSEAS PROJECTS FUND OF FARES AND SUBSISTENCE FOR SMALL TEAMS EG TWO SPECIALISTS FOR SAY TWO

OR THREE WEEKS FROM THE CONSULTANCY ORGANISATIONS OF THE NATIONALISED INDUSTRIES. SALARIES AND OVERHEADS WOULD BE CARRIED BY THOSE ORGANISATIONS. THE ASSESSMENTS WILL, THEREFORE, COST THE CHINESE NOTHING. THE REFERENCE TO MORE SUBSTANTIAL STUDIES IN COLLABORATION WITH UK FIRMS COVERS THE POSSIBILITY THAT, WERE THE CHINESE INTERESTED IN NEGOTIATED CONTRACTS, THEN THE CONSULTANCY WINGS OF THE NATIONALISED INDUSTRIES COULD BECOME PART OF ANY UK GROUP PUTTING PROPOSALS TO THE CHINESE. THEIR COSTS WOULD BE RECOVERED IN THE CONTRACT PRICE.

6. WE WOULD APPRECIATE YOUR URGENT COMMENTS, ON THE DRAFTS IN MIFT, IN THE CONTEXT OF THE POLICY OUTLINED ABOVE, DESK BY 24.090OZ. WHEN WE HAVE CONSIDERED YOUR ADVICE WE ENVISAGE ASKING BTC TO FORWARD THE DRAFTS TO KADOORIE FOR URGENT COMMENT AND, IN THE LIGHT OF THESE, INSTRUCTING YOU TO PRESENT THE FINAL PAPER TO THE CHINESE SUFFICIENTLY IN ADVANCE OF MR DELL'S VISIT FOR THE PROPOSALS TO HAVE BEEN UNDERSTOOD, BUT NOT SO LONG AS TO ENABLE THEM TO RAISE

DETAILED POINTS WITH MR DELL.

OWEN

FILES FED

ES & SD

ECON D

TRED

NEWS D

COPIES TO MR ROYCE

MR KNIGHTON

DEP SEC

MR OLDHAM

11C/AD

MR WILKS

BOTB

DOT

MR BROWNING

CRE4

HK & GD

MR TWYMAN

OPG

PS/MR JUDD

MR LOVE

CRE

PS/LORD GORONWY-ROBERTS

MR CROFT

FEA

PS/PUS

MR LIPPITT

DEP SEC

SIR A DUFF

MR FARROW

SBP

DOI

MR CORTAZZI

MR THORNTON

EPT

MR MURRAY

ME THOMAS

MR COTTERILL

ECGD

MR BUTLER MR LEAHY

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