900 MEXICO
GR 1350
CONFIDENTIAL
DEY 130900Z
FM BTC HONG KONG 130416Z NOV 78
TO IMMEDIATE DOI
HKR164jUTION
K129/
TELEGRAM NUMBER INDUS 191 OF 13 NOVEMBER
INFO IMMEDIATE MEXICO.
FOR BULLOCK INFO SIR P CAREY FROM LIPPITT.
(ح)
PUSD (2)
NEGOTIATIONS WITH CLP FOR EHV TRANSMISSION SYSTEM.
RECTORY Action Toten
メ
BGL
1. AFTER A FULL WEEK'S HARD NEGOTIATING IT HAS PROVED IMPOSSIBLE TO KEEP THE UK SWITCHGEAR IN THE TRANSMISSION SYSTEM PACKAGE AND RETAIN THE PROSPECT OF A SUCCESSFUL CONCLUSION.
2. THE IMBALANCE BETWEEN THE UK SWITCHGEAR PRICE AND THE PRICES
AVAILABLE TO CLP FROM THREE EUROPEAN MANUFACTURERS INCLUDING BROWN BOVERI (BBC) AND JAPAN IS RECOGNISED BY ALL - INCLUDING THE
SWITCHGEAR MANUFACTURERS TO BE (A) ENORMOUS (UP TO POUNDS STERLING 20 MILLION IN POUNDS STERLING 35 MILLION) AND (B) UNBRIDGEABLE EVEN TAKING ACCOUNT OF THE FINANCIAL PLUS FACTORS
ELSEWHERE IN PACKAGE.
3.
4.
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1
THE SWITCHGEAR MANUFACTURERS (GEC AND NEI REYROLLE) THEREFORE WITHDREW THIS WEEKEND, BY MUTUAL CONSENT. WE HAVE FOUGHT LONG AND HARD FOR THEIR INCLUSION, BOTH BECAUSE OF THE VITAL IMPORTANCE OF THE WORK TO THEM AND THE INDUSTRY AND FROM THE POINT OF VIEW OF DEMONSTRATING THE TOTAL CAPABILITY OF THE UK INDUSTRY ACROSS THE FIELD OF POWER GENERATION AND TRANSMISSION, WITH AN EYE VERY MUCH TO CHINA. INDEED WE HAVE TAKEN THE INCLUSION OF SWITCHGEAR VIRTUALLY TO THE POINT OF JEOPARDISING OUR ABILITY TO ACHIEVE THE
REST OF THE PACKAGE, CAUSING CONCERN TO THE MAIN CONTRACTOR, BALFOUR BEATTY WHO HAVE BEEN ADMIRABLY SUPPORTIVE OF THE TOTAL PACKAGE CONCEPT THROUGHOUT THE NEGOTIATION.
A
THERE HAVE BEEN SEVERAL CONTRIBUTARY REASONS FOR THE LOSS OF THE SWITCHGEAR'S ELEMENT. UK 400KV METALCLAD SF6 SWITCHGEAR
IS, BY COMMON CONSENT, RELATIVELY EXPENSIVE AT THIS STAGE IN ITS DEVELOPMENT. BUT THIS IS SEVERELY EXACERBATED BY THE QUESTION OF SPECIFICATION - BOTH GENERALLY AND IN RELATION TO CLP'S
REQUIREMENTS.
5. THE CEGB SETS BY INTERNATIONAL STANDARDS VERY ARDUOUS.
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