TNAG-0841-FCO40-1050-Visit-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-Chi-1979 — Page 134

CONFIDENTIAL #2

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(b) Large-scale supplies

7.

CLP have said that on completion of the

negotiations on the 50 mw supply, the KEIB indicated that they appreciated the sympathetic attitude of

the Hong Kong Government and CLP towards assisting their 'Four Modernisations' programme, and asked

CLP if they could supply a further 200 mw by

September 1979.

8.

CLP are unable to do this because (i)

their existing transmission system is inadequate and (ii) they do not have sufficient spare

generating capacity. As regards (i), CLP's new

400 kv 'ring' transmission circuit in the NT will

not be operative until 1982. As regards (ii),

CLP's load pattern is such that they could provide

the additional 200 mw continuously only for the

4 to 6 months of the winter period. To supply

200 250 mw on a year round 24 hour basis

would entail a certain amount of pre-investment

which, under the Scheme of Control, could be

regarded as a subsidy from Hong Kong

consumers,

and consequently would be unacceptable to the

Hong Kong Government. Nevertheless, CLP say

they are anxious to show willing "so as to

prevent others from building upon the foundations

which (CLP) have taken so much trouble to

construct."

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