TNAG-0769-FCO40-973-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 121

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RALLIVED MEGISTRY NO. 51 310049978

OFFICER

DEPARTMENT OF INDUSTRY

ASHDOWN HOUSE

123 VICTORIA STREET

LONDON SWIE 6RB

PA

REGISTRY Action Taken

TELEPHONE

DIRECT LINE

01-212

3301

INDEX

PS/

Secretary of State for Industry

:

B C Cartledge Esq Private Secretary to the Prime Minister 10 Downing Street LONDON

SW1

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HRAD 15

Mr Certarsi

SWITCHBOARD 01-212 7676

26 October 1978

By hard Coronest-hobsests ces

PS Ruo

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Mr MURRAY

F TREA

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Dear Bryan

SIR LAWRENCE KADOORIE

LAWRENCE

I enclose the original and copy of a letter addressed to the Prime Minister which Sir Lawrence Kadoorie, Chairman of China Light and Power, handed over to Mr March, our Trade Commissioner in Hong Kong.

Hearing that the Prime Minister has accepted, in principle, an invitation to visit China, Sir Lawrence suggests he should also go to Hong Kong and offers to show him the CLP and KESCO installations. Mr March has already indicated to Sir Lawrence that there is some uncertainty about the timing of the visit.

Officials in this Department, Department of Trade and the Foreign and Commonwealth Office recommend that Hong Kong should have a prominant place in any programme for the Prime Minister's visit to the Far East.

Having already been awarded the contract for the first two turbine generators and associated goods and services (price £103M) for the Tap Shek Kok development, UK industry is now actively negotiating for the transmission line (offer price £136M), and this will be followed by negotiations for the remaining two generator sets (offer price £75M). It is important therefore to sustain the personal relationship between the Prime Minister and Sir Lawrence Kadoorie. We can only assume the figure of £1,000M for UK plant and facilities in Sir Lawrence's letter must be an error.

Accordingly, a draft reply is enclosed indicating that, subject to difficulties of timing, it is the Prime Minister's wish to visit Hong Kong and accept Sir Lawrence's offer to see something of the generating facilities.

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