TNAG-0769-FCO40-973-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 93

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00 DO I DESKBY 150900Z

00 MEXICO CITY

GR 445

CONFIDENTIAL

DESKBY 150900Z

FM BTC HONG KONG 159444Z NOV 78

TO IMMEDIATE D.0.1

TELNO.INDUS 196 OF 15 NOVEMBER,

العمر

DALK OFFIVA INDEX

મ

NO. 51

13/4

NO DISTRIBUTION

INFO IMMEDIATE MEXICO CITY (FOR P.CAREY).

FOR BULLOCK FROM LIPPITT.

HKG TRED (2)

129

14 Thoups.

of GEC

NEGOTIATIONS WITH CLP FOR EHV TRANSMISSION SYSTEM.

1. WE SPOKE ON THE TELEPHONE ABOUT MY PREVIOUS CABLE ON THIS MATTER AND YOU SAID THAT (VEALE THOUGHT THAT THE PACKAGE WE WERE NEGOTIATING MINUS THE SWITCHGEAR WAS NOT REALLY WORTHWHILE FOR THE U.K. MY VIEW, AS I SAID TO YOU AT THE TIME,

IS TOTALLY OPPOSITE TO THAT. WE WILL BE GETTING A CONTRACT WORTH IN TOTAL £80.5 MILLION OF WHICH £54 MILLION WILL BE FOR U.K GOODS AND SERVICES WHICH IS BY ANY STANDARDS A SIZEABLE CONTRACT. THE ADDED VALUE OF THE GOODS AND SERVICES IS HIGH AND THE QUESTIONABLE ITEM YOU MENTIONED, CABLES, AMOUNTS TO ONLY £6.1 MILLION OF WHICH ONLY £740,000 IS IMPORTED IN THE FORM OF COPPER AND LEAD SO THERE IS NOTHING IN THAT ARGUMENT EITHER. IN ADDITION WE ARE MAINTAINING CLOSE RELATIONS WITH CLP AND VEALE SHOULD REMEMBER THAT A LOT HANGS ON THAT FOR GEC IN RESPECT OF TWO FURTHER 350MV SETS FOR CASTLE PEAK (UNITS

AND WE 3 AND 4) FOR WHICH WE EXPECT TO TENDER NEXT YEAR. HAVE MANAGED TO BEAT OFF A VERY DETERMINED EFFORT BY EUROPEAN AND JAPANESE MANUFACTURERS TO BREAK THE U.K PACKAGE CONCEPT

IN HONG KONG.