TNAG-0769-FCO40-973-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 108

00 HONG KONG (DESKBY 100100Z)

GRS 300

CONFIDENTIAL

DESKBY 10010OZ

FM DTI 09171OZ NOV 78

TO IMMEDIATE HONG KONG

TELEGRAM NUMBER INDUS 290 OF 9 NOVEMBER

FOR THORNTON FROM KESTEN

TRANSMISSION SYSTEM: SHIPPING

293 YOUR INDUS 186 REFERS.

294

HKK164 |

nj

तू

Mr. Thorpen

Noi

PA

H K + CD

I WAS SURPRISED TO READ YOUR PARA ONE AND IN PARTICULAR THE

LAST SENTENCE.

2. I HAVE SPOKEN TO MILLS OF BALFOURS (WHO HAD COOPER WITH HIM)

AND THEIR BEST ESTIMATES FOLLOW.

3. YOU SHOULD KNOW THAT OF THE POUNDS STERLING 5.25M IN THE BID POUNDS STERLING 4M REPRESENTS COST OF SHIPPING (BALANCE BEING INSURANCE) INCLUDING SHIPPING COSTS FOR FERRANTI TRANSFORMERS. YOU WILL REMEMBER PRICE ADVANTAGE ENJOYED BY FERRANTI STEMMED FROM BULK SHIPMENT IN CHARTERED NON- CONFERENCE VESSEL. MILLS HAS MADE NO ATTEMPT TO TAKE FURTHER ACCOUNT OF SAVINGS THAT MIGHT BE POSSIBLE IF ALL TRANSFORMERS AND EXTRA-LONG ITEMS WENT IN THIS WAY. HE ADVISES THAT SOME ACCOUNT HAD ALREADY BEEN TAKEN OF 15 PER CENT DISCOUNT FROM

FEFC.

4. VALUE OF OUR SPECIAL DISCOUNT RATE IS ESTIMATED AT POUNDS STERLING 314,000 (THREEHUNDRED AND FOURTEEN THOUSAND POUNDS STERLING) WITH CAVEATS SUGGESTED IN PARA 3 YOUR TELEX. BALFOURS ARE CONFIDENT THAT THIS FIGURE IS ACCURATE AS BASED ON EXISTING

WEIGHTS ETC AND SHIPPING RATES AS AT 1 MAY 1978. ASKED TO SUGGEST THE RANGE OF POSSIBLE VARIATION THEY QUOTED POUNDS STERLING 300,000 - 330,000 (THREE HUNDRED TO THREE HUNDRED AND THIRTY THOUSAND POUNDS).

5. I UNDERSTAND FROM MISS FENN AND FROM BEI THAT DISCUSSIONS ARE NOT GOING TOO WELL. GRATEFUL FOR ANY INFORMATION YOU CAN PASS ON

WOULD ME SO BE GRATEFUL FOR

TO MC

ALLOWS.