TNAG-0769-FCO40-973-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 41

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YOUR INDUS 315 AND 316 : HONG KONG TRANSMISSION PRESS RELEASE.

1. ODELL AGREED THIS MORNING TO ACCEPT KADOORIE'S TERMS FOR

FINALISATION OF THE LETTER OF INTENT WHICH REQUIRED BALFOUR

BEATTY TO DROP THEIR REQUEST FOR £1.16 MILLION TO COVER THE

COST OF REPHASING IN RETURN FOR A COMMITMENT BY CLP TO INCLUDE

IN THE PACKAGE AN ORDER FOR ANY ADDITIONAL TRANSMISSION FACILITIES

WHICH MIGHT BE NECESSARY TO ENABLE A BULK POWER SUPPLY TO BE

GIVEN TO CHINA. AT THE SAME TIME KADOORIE AGREED TO ACCEPT

ALL THE COSTS IN BALFOUR BEATTY'S REVISED OFFER RELATING TO THE INCREASED SCOPE OF SUPPLY.

2. CLP ARE NOW PREPARING THE DRAFT LETTER OF INTENT FOR WHICH

SIR LAWRENCE PROPOSES TO GET FORMAL BOARD APPROVAL BY MEANS

OF A CIRCULAR LETTER. ALL BEING WELL THE LETTER SHOULD BE

SIGNED ON TUESDAY 12 DECEMBER. WHATEVER HAPPENS SIR LAWRENCE

WILL ANNOUNCE AT CLP'S AGM AT 6 P.M LOCAL TIME ON TUESDAY

THAT CLP INTEND TO PLACE THE ORDER WITH BALFOUR BEATTY. I

ASSUME THAT YOU WILL WISH TO ISSUE YOUR PRESS RELEASE TO

COINCIDE WITH THE CLP ANNOUNCEMENT 1.E AT 1000 GMT ON 12 DECEMBER.

IF THE LETTER HAS NOT ISSUED BY THEN THE FIRST LINE OF YOUR

RELEASE WILL HAVE TO. READ ''CLP HAS ANNOUNCED IN HONG KONG

TODAY THAT A LETTER OF INTENT WILL SHORTLY BE ISSUED TO BALFOUR BEATTY.....

3. CLP REMAIN KEEN TO INCLUDE SOME REFERENCE TO THE LINE TO

THE BORDER AND DISCOUNT THE FEARS OF AN UNFAVOURABLE CHINESE REACTION BECAUSE THE PRESS ITEM REPORTED IN PARA.1 OF MY

INDUS 217 WAS INITIATED BY THE CHINESE SIDE AND NOT BY CLP.

SIDNEY GORDON AGREES (AND WILL TRY TO PERSUADE SIR LAWRENCE)

THAT THE EXTENSION MIGHT BE COVERED IN YOUR PRESS RELEASE BY THE ADDITION OF WOULD FACILITATE THE PROVISION OF A BULK SUPPLY TO CHINA IF THIS WERE REQUIRED. THE 400 KV TRANSMISSION''