PRIME MINISTER
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CONFIDENTIAL
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Mr Partuzzi
FRO-TRØDECEIVED IT! REGISTRY NO. 51
I am writing to tell you of the outcome of the Department (1978
latest negotiations with China Light and Power in Hong REG. TH You may well hear from Sir Lawrence Kadoorie in de Afuture is
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Officials from my Department together with representatives of the contractors and ECGD have just recently returned from two weeks of intensive negotiations with "China Light" on their proposed high-voltage transmission system, which is associated with the new Castle Peak Power Station for which GEC are providing
the first two generating sets. While there has as yet been no formal agreement, it is clearly understood on both sides that the UK nominated main contractor, Balfour Beatty Limited, will shortly be awarded a contract worth £80.5 million for the design, supply and erection of overhead transmission lines, underground cables, and substation transformers and reactors.
It is also understood that if the Chinese should accept Sir Lawrence Kadoorie's proposal for the supply of electricity into China and the rural electrification of Kwantung Province, Balfour Beatty will be the main contractor for the spur line from the CLP network to the border. This will be worth some £131 million.
This latest contract will provide another successful example of the UK Limited package approach, pioneered with China Light and Power on the Castle Peak Power Station. It could not have come at a better time or in a better place with regard to even bigger business potentially available in China.
Unfortunately, it has not proved possible to win for the UK the switchgear business inherent in a total transmission system.
In order for us to succeed with the rest of the package it eventually became inevitable that the UK switchgear manufacturers, GEC and NEI,
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