G.F. 326
KM
H
20
21.*
6
One longer term consequence of supplying power stations to Guangdong could well be that the electricity enables them to industrialise and so to. compete with some of Hong Kong's industries. But this is going to happen regardless of who supplies the power stations. It will be for Hong Kong to face up to such competition when it emerges.
(d) Conclusion
22.
There would be some conflict between the
existing expansion plans of CLP and HEC (as modified
"
to take account of an interconnection in 1981/82) ((a) above), and CLP's scheme to supply China from the Drax 'B' units installed at Tap Shek Kok ((b) (ii) above). Despite all that CLP say, it is not going to be easy to keep the operations separate (essential if Hong Kong consumers are to be protected); and there would be serious problems over land and pollution.
23.
There is possible conflict between CLP's scheme and Guangdong's own long term plans for adding to their generating capacity ((c) above). CLP's idea seems to be that by the time Guangdong becomes self- sufficient (in, say, 9 10 years time) the output of the proposed new generating company could be absorbed by increased demand in Hong Kong. This might turn out to be the case, but it seems that Guangdong has it in mind to add to their foreign exchange earnings by supplying electricity to Hong Kong, as well as food and water. All in all, it might be in Hong Kong's best overall interests if CLP did not proceed with its scheme for large-scale supplies of electricity to China. Hong Kong consumers might otherwise be left with a large
comut power station, Hong Kong did not need.
NMT/sr
Economic Services Branch 16th March 1979
機
CONFIDENTIAL ##
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