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6.
Export Credit Guarantee Department's (ECGD) credit arrangements
for Hong Kong (about a quarter of the guarantees covering projects
approved not on normal commercial grounds but on grounds of UK
national interest) are under review. But should be no difficulty
in accommodating Mass Transit Railway (paragraph 7 (c)) in which
several UK firms are interested.
7.
MAJOR PROJECTS
CASTLE PEAK A AND B POWER STATIONS
a) In 1977 British group led by GEC and Babcock negotiated contract
worth around £300 million with Lord Kadoorie's China Light and Power
Co (CLP) and Esso Eastern for Castle Peak 'A' power station.
Progress
of construction good; station should be operational by Autumn 1982.
b) Contracts for another power station at same site, Castle Peak 'B',
worth at least £550 million, signed with the GEC/Babcock group in
August. The contracts should secure 5,000 to 7,000 jobs in UK over
next seven years.
MASS TRANSIT RAILWAY (MTR)
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ISLAND EXTENSION
c) Initial stages of MTR finished in 1980. UK firms involved in
tunnelling and supply of rolling stock and other equipment; total
contract worth over £290 million for the main network. In December
1980, decision was taken to build MTR extension.
Metro-Cammell have
just (December 1981) negotiated £60 million contract for rolling
stock with ECGD assistance, having supplied it for initial stages of
MTR. UK firms hoping for tunnelling contracts; position uncertain
at present, as bids well above what MTR had envisaged.
Negotiations
still in progress.
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