TNAG-0769-FCO40-973-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 5

Page

GRS 270A

CONFIDENTIAL

DESKBY 1401OOZ

FM D T I 13200OZ DEC 78

To lEDIATE BIC HONG KONG

RECEIVE

INT

OFFICER

TELEGRAM NUMBER INDUS 330 003 Dune

AND TO 111MEDIATE PEKING.

FEGIS

A ว

FEC 121/39

Blean

FED

PUSP &

требо

1.29

RECE

FOR MARCH FROM OLDHAM.

15 DEC 1978

COAL FOR ELECTRICITY.

INDEX

PÅ

Copy to lose Throgman HM GD The Tyson Ny /DST

MY INDUS 312 OF 6 DECEMBER REFERS.

then she 7th $7.5/...

2. WE HAVE NOW HAD COMMENTS FROM NCD (RHODES) AND ICF (WARI(e).

3. NCB SAY THE FORMULA IN PARA 3 OF YOUR INDUS 214 DERIVES FROM

THE DEFINITION OF THE UNITS INVOLVED. ONE STANDARD TONNE EQUALS SEVEN MILLION KILO CALORIES. ONE THERM EQUALS 25,200 KILOCALORIES, THEREFORE ONE STANDARD TONNE EQUALS 278 THERMS. THIS DOES NOT ALLOW

FOR THE VERY SUBSTANTIAL LOSS OF HEAT IN GENERATING AND TRANS- MITTING ENERGY. HENCE A DIRECT EXCHANGE IN THE PROPORTION OF CHE STANDARD TONNE OF COAL FOR 278 THERMS OF ELECTRICITY WOULD NOT

REPEAT NOT PROVIDE ENOUGH COAL TO GENERATE THE ELECTRICITY, LET

ALONE COVER THE OPERATING AND CAPITAL COSTS OF THE POWER STATION

AND TRANSMISSION SYSTEM.

4. NCB ARE UNABLE TO UNDERSTAND THE REASON FOR ADOPTING THE FORMULA.

THEY POINT OUT THAT THE ACTUAL COAL PROVIDED WILL HAVE TO BE

ASSESSED AND CONVERTED INTO STANDARD TONNES.

5. NEITHER NCB NOR ICT HAVE DEEN KIVITED TO JOIN IN KADOORIE'S

NEGOTIATIONS WITH CHINA ON COUNTER-PURCHASE. HOWEVER, ICF HAVE DEEN ASKED TO SECOND A COAL SOURCING EXPERT TO CLP/KESCO FOR TWO

YEARS TO ASSIST WITH COAL PROCUREMENT GENERALLY. THEY ARE STILL

CONSIDERING THIS REQUEST.

6. IN ADDITION, THE CHINESE HAVE INDICATED THAT ICF/NCB WILL BE INVITED TO ASSIST IN THE OVERSEAS MARKETING OF PART OF THE OUTPUT

OF THE TWO NINES IN TATUNG FOR WHICH NCD IS CONDUCTING FEASIBILITY STUDY. THEY HAVE BEEN TOLD THAT THE HONG KONG POWER STATION WILL IE CUPPLIED FROM THOSE TIMES. HENCE NCD/ICF COULD BE IT! AN ARIVALENT

POSITICU