TNAG-0769-FCO40-973-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 54

00 ONG KONG DESKBY 070100Z

GRS 171

CONFIDENTIAL

FM DOI 061841Z DEC 78

TO IMMEDIATE BTC HONG KONG

CONFIDENTIAL

HKK 164/1

RECEIVED IN K.

DESK INDEX

No

TELEGRAM NUMBER INDUS 312 OF 6 DECEMBER

INFO PEKING

FOR MARCH FROM OLDHAM

- 8 DEC 1978

11/12/

1/121 f

1

* Y

Lee 330

YOUR INDUS 214 OF 4 DECEMBER. COAL FOR HONG KONG

319

360

2288

329

аб

Trypsin

129 TRED (2)

HKIGD

WE ARE INFORMING NCB, INTERCONTINENTAL FUELS (ICF), BEI: AND BALFOUR BEATTY ABOUT CHINA'S RESPONSE.

WE AWAIT NCB/ICF ADVICE BUT THE BASIS OF EXCHANGE DESCRIBED IN YOUR PARA 3 WOULD SEEM TO ENSURE KADOORIE ALWAYS RECEIVED MORE COAL THAN

HE BURNS GENERATING ELECTRICITY FOR CHINA. THE FINANCIAL OUTTURN

WOULD DEPEND ON THE SIZE OF COAL SURPLUS, THE COST OF COAL FROM

ALTERNATIVE SOURCES AND CAPITAL AND OPERATING COSTS OF THE POWER STATION AND TRANSMISSION SYSTEM ON THE HONG KONG SIDE. WHILST SEEMING REASONABLE AS A BASIS FOR A COAL FOR ELECTRICITY SWAP, THIS

APPROACH COULD NOT APPLY TO THE TRANSMISSION SYSTEM. GRATEFUL ANY-

THING YOU CAN FIND OUT ABOUT KADOORIE'S OWN ATTITUDE AND HIS UNDER-

STANDING OF CHINA'S VIEWS ON: INVOLVEMENT OF ICF AS ARRANGER OF

ADVANCE COAL SALES AND ADVISER TO KADOORIE: EQUIPMENT SALES BY

BALFOURS/BEI.

1

CONFIDENTIAL