TNAG-1595-FCO40-2180-Honk-Kong-leading-personality-Li-Ka-shing--businessman-and--1987 — Page 23

999-80

BRIEF No. 3

SECRETARY OF STATE'S MEETING WITH MR LI KA SHING, 22 JULY 1987

HONG KONG: POSSIBLE ORDER FROM HONG KONG ELECTRIC

Line to Take

Hope Northern Engineering Industries can play a part in Hong Kong Electric's plans for the construction of a new power plant on

Lamma Island.

Background

Hong Kong Electric intend to add a further 350MW unit to their existing generating capacity on Lamma Island. The existing five units were all supplied by Mitsubishi of Japan but on this occasion Northern Engineering Industries (NEI) have been invited to bid for the turbine generator package. However, it is likely that the Japanese will still supply the boilers and act as project managers. It seems probable that an order will be placed with NEI later this year.

Prospects in China

Mr Li Ka Shing, Hong Kong Electric and Hutchison Whampoa, plan to form a joint venture with the Chinese for the construction of a coal fired power station in Jiangsu Province. The project, which is at a very early stage, would be a barter arrangement in exchange for coal. Preliminary discussions have been held with NEI about the possibility of supplying the equipment.

SEE3B