CONFIDENTIAL
CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 1695
OF 04174OZ DEC 92
Mi
MAR 090/1
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
INFO IMMEDIATE BTC HONG KONG
57
135461
MDHOAN 5338
TOP COPY Q DIST ?
po
FOR PS/GH FROM HKD
HONG KONG ECONOMY
1. A couple of points arose from a meeting today with DTI and ECGD on which we would value your advice:
Black Point Power Station
2. ECGD have seen BTC Hong Kong telno 260 advising that China Light and Power will in due course seek a private treaty grant for the Black Point Power Station and that this will be submitted to the Land Commission. ECGD are aware that the Chinese side raised no objection in the JLG to CLP's new scheme of control, which they confirmed in writing to CLP, and that China also have a strong economic interest in seeing this project proceed. ECGD are, however, slightly nervous about the Land Commission angle. They would be grateful to know the timings involved in the Land Commission process and also for an assessment on whether China might cause problems over this grant, which we understand would be in order of 140 ha. The grant will not be considered by the Land Commission within the next few months and ECGD understand that it is therefore difficult to make any judgement at this stage on the attitude the Chinese side are likely to adopt. However, if you or the company have heard any positive noises or other useful information which will reassure ECGD, we should be grateful to receive it.
Line to Take for DTI
3. The DTI are receiving requests from businessmen and investors on the situation in Hong Kong. There is nervousness arising from the fall in the stock market, suggestions that there may be discrimination against British business interests, and the Chinese side's statement on franchises. DTI have asked for a Line to take in response to enquiries. We have already commissioned by telephone (Ricketts/Hoare) an assessment of the
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CONFIDENTIAL
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