Mr Burges-Watson
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MERVED IN AIGISTRY NO. 51 24 SEP 1981
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OFFICIAL COMMITTEE ON EXPORTS
1. Thank you for your minute of 18 September.
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2. I confirm that the Secretary of State and the Lord Privy Seal have not been involved in support of the 'Hong Kong' projects in the DOT list. However, they have both been actively involved with other projects. An example is the Castle Peak 'B' power station, the order for which was announced by the Secretary of State during his visit to Hong Kong in April/May. The Lord Privy Seal was also involved in meetings of EX Committee where ECGD support for the project was discussed. I understand, however, that Castle Peak 'B' project has been omitted from the DOT list becase a contract has now been signed for the first two generating units. But the decision on the third and fourth units is not being taken until 1983 and there may, therefore, be a case for including the project in the list.
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The Lord Privy Seal has also written to his colleagues on the political desirability of HMG support for other smaller projects (such as Metro-Cammell's bid to supply rolling stock to the Kowloon-Canton Railway), which are excluded from the list by the £50 million limit.
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24 September 1981
R D Clift
Hong Kong and General Department
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