TNAG-2625-FCO40-3816-Visit-by-Douglas-Hurd--Secretary-of-State-for-Foreign-and-Co-1992 — Page 9

CONFIDENTIAL

[Mr Needham

has now Written to Lin attached.

No need to raise]

- NEI's interest in a contract for the Lamma Island power station. The Lamma Island station is owned by Hong Kong Electric, a subsidiary of Li Ka-sheng's group. NEI have a foot in the door, having provided unit 6 of the power generation equipment (units 1-5 are Japanese). They are now bidding hard for unit 7. But they have had a set-back in that unit 6, after performing successfully for six months, has been suffering excessive vibration. NEI hope that the problem can be resolved rapidly and believe they are well placed to win unit 7. Mr Needham has held a number of meetings with Li Ka-sheng in Hong Kong over the last few days. He will let us know on 26 July if he recommends that the Secretary of State should raise the point with Li: meanwhile, I have included a contingency line.

chelts

PF Ricketts

.

CONFIDENTIAL