TNAG-0769-FCO40-973-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 43

00 D C

334

GR 410

RESTRICTED

FM BTC HONG KONG 080941Z DEC 78

TO IMMEDIATE D.0.1.

TELNO. INDUS 218 OF 8 DECEMBER.

FOR HAVELOCK, MEPT DIVISION.

HONG KONG ELECTRIC (HKE).

RECOVE

INDEX

No

NO DISTRIBUTION

علا

See 13SS

то

TO1727DOI.

NQ. 51 4129

Action Taken

RED). (2)

Прасто

PUSD (2)

1. JOHN PEACOCK ASKED ME TO CALL THIS MORNING TO DISCUSS HIS

FORTHCOMING VISIT TO THE U.K.

2. HE REMINDED ME THAT IT HAS BEEN HONG KONG ELECTRIC'S

TRADITIONAL POLICY TO ORDER MAJOR ITEMS OF EQUIPMENT BY MEANS

OF LIMITED INTERNATIONAL TENDERS. HOWEVER FOLLOWING HIS DISCUSSION WITH LIPPITT AND YOU LAST MONTH, HE IS PERSONALLY-

PERSUADED THAT THE COMPANY SHOULD CONSIDER THE MERITS OF THE

NEGOTIATED PACKAGE APPROACH AND HE WOULD LIKE TO DEVELOP

DISCUSSIONS ABOUT THE SCOPE OF PACKAGES COVERING:-

(A) COAL AND ASH HANDLING EQUIPMENT PLUS THE ASSOCIATED CIVIL

ENGINEERING WORK ON THE JETTY:

(B) TRANSMISSION LINKS FOR HKE'S NEW POWER STATION ON LAMMA.

3. PEACOCK LEAVES FOR THE U.K ON 16 DECEMBER AND WOULD BE

AVAILABLE FOR DISCUSSIONS ON WEDNESDAY-FRIDAY (20-22 DEC) OF THE FOLLOWING WEEK. HE LOOKS FORWARD TO MEETING LIPPITT AND WOULD

LIKE TO MEET THE APPROPRIATE BRITISH MINISTER 1.E THE MINISTER OF STATE MR ALAN WILLIAMS.

4. IN CONTRAST TO CLP, WE HAVE AN ADDITIONAL HURDLE IN THAT

PEACOCK MUST CONVINCE HIS BOARD OF THE ADVANTAGES OF THE PACKAGE APPROACH IN TERMS OF D.0.1 SUPERVISION OF DELIVERY AND

PERFORMANCE, FINANCIAL MECHANISMS, CO-ORDINATION AND THE PROVISION OF SPECIALIST EXPERTS IN AREAS WHICH HKE CANNOT COVER FROM THEIR OWN IN-HOUSE RESCURCES. IT WOULD THEREFORE BE HELPFUL IF YOU COULD PREPARE A SHORT DRAFT PAPER SETTING CUT THE PRINCIPLES OF OUR PACKAGE APPROACH WHICH HE COULD PRESENT TO HIS FCARD. HE STRESSED THAT AS A NEGOTIATED