TNAG-0769-FCO40-973-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 25

347

CO HONG KONG

DESKBY 120100Z

TWTH.

3/12

GR 575

TO IMMEDIATE BTC HONG KONG

INFO PEKING

FOR MARCH FROM THORNTON

3d

YOUR INDUS 227

CONFIDENTIAL

DESKBY 120100Z

FM DTI 11205OZ DEC 78

TELEGRAM NUMBER INDUS 321 OF 11 DECEMBER.

ON

TREDE

ху

HKGD

HKK 16 RECEIVE

ا ما جاء

FIED 5-74-1201

OFFICER

No

Action Take.

1. COP'S DRAFT LETTER OF INTENT RECEIVED AS ARRANGED.

2. LIPPITT HAS TELEXED KADOORIE, COPIED TO YOU, ON THE LINES OF YOUR PARA 5. IF A SUBSEQUENT TELEPHONE CALL IS REQUIRED, IT WOULD HELP IF ODELL FROVIDED A BIT MORE AMMUNITION, BY WAY OF FIGURES, COMPARISONS WITH GEC ETC.

3. WE HAVE THE FOLLOWING COMMENTS

(AA) PARA 2. LAST SENTENCE SHOULD READ (TAKING ACCOUNT OF ODELL'S (A), BUT EXTENDING IT: QUOTE THE DEPARTMENT NEVERTHELESS OFFERED FINANCE TOWARDS THE SWITCHGEAR ELEMENT OF THE PACKAGE, UNDER CERTAIN CONDITIONS, IN THEIR LETTER OF THE 15TH NOVEMBER, 1978. UNQUOTE

•

(BB) SCHRODERS HAVE SAID TO US THAT THEY SUPPORT ODELL'S (c) ADDITION OF QUOTE BASED ON THOSE UNQUOTE IN PARA 5 - SINCE THE FINANCIAL ARRANGEMENTS WILL INEVITABLY NOT BE IDENTICAL. BUT THEY WOULD NOT PRESS THE POINT TOO STRONGLY.

4. I HAVE DISCUSSED PARA 10 WITH BIRCH AND RANSOM (ECGD), AND WITH ROBERTS (LAZARDS). AS I SURMISE YOU EXPECTED, ECGD WERE SOMEWHAT CONCERNED AT THE THOUGHT THAT CLP MIGHT WISH TO ASSIGN THEIR RIGHTS, OBLIGATIONS ETC, IF THIS WAS INTERPRETED TO INCLUDE THE ABILITY TO ASSIGN RESPONSIBILITY FOR THE LOAN. AS YOU KNOW, IT IS IMPORTANT TO THEM THAT CLP ITSELF BE THE BORROWER, AS HAS BEEN FROPOSED THROUGHOUT THE LATTER STAGES OF NEGOTIATION.