977
326/26
00 DO 1
GR 515
CYPHER CAT A
HKK 164/1
RECEIVEO 2
INDEX
No
OFFICIN
FM BTC HONG KONG 2618502
CONFIDENTIAL
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Take
IMMEDIATE
DISTRIBUTION
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HKGD See 258
TREDE TRED (2) PUSD (2)
S=27/10
TO IMMEDIATE DO I TELNO INDUS 172 OF 26 OCTOBER 1978.
FOR LIPPITT, DEPUTY SECRETARY FROM HAVELOCK.
MY INDUS 165 AND 167 TRANSMISSION SYSTEM.
285
Arougheen
[Xerots]
FOLLOWING IS LAST SITUATION REPORT, AS AT NOON (LOCAL) 26 OCTOBER.
1. WE HAVE HAD A SERIES OF MEETINGS WITH CLP (AND GOLDSMITH OF ELECTROWATT) EXPLORING THE SCOPE OF UK SUPPLY, TO ESTABLISH, IN OUR MINDS, WHERE CLP/ELECTROWATT HAD MISUNDERSTOOD WHAT IT WAS THE UK WAS OFFERING: AND IN CLP'S, TO DISCOVER WHERE IF ANYWHERE THE UK HAD BEEN OVER-CAUTIOUS IN ITS ASSUMPTIONS ABOUT EG LOCAL CONDITIONS FOR OHL AND AMOUNT OF EXPATRIATE SUPERVISION.
2. THESE DISCUSSIONS WERE CONDUCTED IN A COURTEOUS ATMOSPHERE, BUT THERE IS AS YET NO EVIDENCE THAT CLP/ELECTROWATT ARE MOVING
SIGNIFICANTLY IN THEIR BELIEF ABOUT THE UK PRICE.
3. IT IS APPARENT THAT CLP (AT STONES* LEVEL) NOW REALISES THAT UK SWITCHGEAR IS APART ON PRICE THOUGH WE DO NOT THINK THEY GUESS THE EXTENT. IT IS FRANKLY NOT EASY TO SEE HOW THIS GAP CAN
BE ANYTHING LIKE FULLY BRIDGED. STONES SAID TO ME PRIVATELY THIS
MORNING THAT CLP HAD QUOTED THE CEGB SPECIFICATION WITH THE HOPE THAT THIS WOULD HELP UK MANUFACTURERS. BUT HE IS APPARENTLY READY TO ACCEPT FOREIGN EQUIPMENT WHICH ONLY MEETS LOWER, INTER-
NATIONAL SPECIFICATIONS, IF THE UK PRICE IS OUT OF LINE.
4. SIR LAWERENCE KADOORIE AND SIR SIDNEY GORDON SPOKE TO ME ON
THE TELEPHONE TODAY, TO REINFORCE THE MESSAGE THAT THERE IS NO POINT IN YOUR COMING OUT UNLESS THERE IS A REAL PROSPECT OF OUR
CETTING THE BUSINESS WHICH THEY SEE AS EQUIVALENT TO CUR BRIDGLIG
THE POUNDS STERLING 30 MILLION GAP. SIR SIDNEY GORDON REMAINS ADAMANT THAT BALFOUR BEATTY HAVE LOADED THE DOICE
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