TNAG-0841-FCO40-1050-Visit-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-Chi-1979 — Page 139

CONFIDENTIAL # 3B

17.

8

(b) ` privately, the group's reaction was

that the proposal was probably a non-

starter because :

(i) the plant for Drax 'B' had been

built to operate in a cold climate;

it was needed to use UK-produced

coal;

(ii)

(iii) they were rather sceptical about

CLP's prognostications of the

growth in demand from China, and

about China's willingness to have

this demand met from Hong Kong.

Comment by Economic Services Branch

Leaving aside the political considerations,

there are two aspects to Sir Lawrence's proposal of

concern to the HK Government :

(i) the formation of a separate company

(ii)

outside the Scheme of Control to supply

China with 200 250 mw; and

the possibility of making additional

land available at Tap Shek Kok for

18:

(a)

(b)

this purpose.

i) A separate company

Given

Sir Lawrence's objective, on our

insistence, that Hong Kong consumers

should not subsidise sales of electricity

to China;

the decision to enter into an agreement

to supply large quantities of electricity