TNAG-1958-FCO40-2787-Future-of-Hong-Kong-Daya-Bay-nuclear-power-plant-1989 — Page 77

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FM DTI

TO DESKBY 16010OZ PEKING

TELNO INDUS 53

OF 15180OZ MAY 89

HKC166/1

AND TO DESKBY 16010OZ BTC HONG KONG

STRUCTURAL STEEL FOR YUE YANG AND DAYA BAY

Miss Elkost

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072115

MDHIAN 4760

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TEXT OF A LETTER FROM OUR SOS TO SIR NIGEL BROACKES CHAIRMAN OF TRAFALGAR HOUSE PLC DATED 15 MAY 89.

QUOTE WE SPOKE THREE WEEKS AGO ABOUT THE COMPLAINTS WHICH THE CHINESE HAD RAISED WITH ME ABOUT THE DELAYS IN THE SUPPLY OF STEELWORK FOR GUANGDONG AND YUE YANG POWER STATIONS IN CHINA. YOUR LETTER OF 26 APRIL ASSURED ME THAT THE MATTER WAS RECEIVING THE HIGHEST PRIORITY WITHIN TRAFALGAR HOUSE.

I HAVE TO TELL YOU THAT FOLLOWING THE VISIT BY ALAN BROWN (MANAGING DIRECTOR, GEC TURBINE GENERATORS), NICK SALMON (DIRECTOR AND GENERAL MANAGER, GEC TG) AND PERRY GOODMAN (DTI) TO CBE'S DARLINGTON WORKS LAST FRIDAY, 12 MAY, I AM EVEN MORE CONCERNED THAN WHEN WE LAST SPOKE. THE REASONS ARE THAT:

(I) THE GEC/DTI TEAM FOUND THAT, ON CBE'S OWN ADMISSION, CBE PRODUCTION THROUGHPUT TARGETS FOR THE CHINESE STEELWORK (GUANGDONG PLUS YUE YANG) HAD NOT BEEN MET IN EACH OF THE

LAST TWO WEEKS.

(II)

THE CRUCIAL DEADLINE FOR FABRICATING THE REMAINING GUANGDONG UNIT 2 STEELWORK IS THE END OF MAY. BUT, BECAUSE OF CBE'S FAILURE TO MEET PRODUCTION TARGETS OVER THE LAST TWO WEEKS, GEC HAS NO CONFIDENCE THAT, ON EXISTING PRIORITIES ALLOCATED BY DARLINGTON, THE REMAINING UNIT 2 STEELWORK WILL BE FABRICATED BY END MAY. I UNDERSTAND THAT IT IS GEC'S VIEW THAT

IF THE DEADLINE IS NOT MET THE EFFECT ON THE PROJECT SCHEDULE

WOULD BE DISASTROUS.

(III) THE SUPPLY OF STEELWORK FOR YUE YANG TO MEET THE MID-

JULY FOB DATE IS STILL POSSIBLE IF THE NECESSARY PRIORITY IS

GIVEN BY DARLINGTON.

(IV) AT THIS CRUCIAL TIME THE CBE MANAGING DIRECTOR WAS ABLE

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