TNAG-0841-FCO40-1050-Visit-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-Chi-1979 — Page 127

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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13.

Mr. Varley said CLP's proposal would be examined in the UK. However, we believe that the group's private reaction was that, for various reasons, the proposal was not on. In particular, they were rather sceptical about CLP's forecast of the growth in demand in China.

14.

Unless CLP managed to arrange some kind of deal like this, it would not be possible for them to sell electricity to China at their present bulk tariff rate if they bought new plant for the purpose, the price charged to China would have to be considerably increased to avoid subsidisation by HK consumers.

15.

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While, politically, CLP's proposal to supply electricity in bulk to China from Hong Kong might not be a bad thing, there would be a number of practical problems. The most important of these would be the need to find another site (at Tap Shek Kok) for a power station, i.e. to replace CLP/KESCO's station 'B'; and the additional pollution that would be created by another large power station in that area.

ESB comment

Annex C

16.

ESB has serious doubts concerning CLP's proposal. Quite apart from the practical difficulties, the proposal could involve substantial risks for CLP both in terms of the growth of China's demand, and in terms of China's willingness to have a substantial growth met by a supply from Hong Kong over the longer term.

(c) Guangdong's own plans for new generating stations

17.

A note received from the General Manager of GEC

In brief, a number (HK) (Mr. J. Weedon) is at Annex C. of meetings have been held with the Guangdong authorities (Peking officials were present) at which the provision of the following was discussed:

CONFIDENTIAL #2

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