TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 161

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CHINA LIGHT & POWER COMPANY, LIMITED

中華電力有限公司

147 ARGYLE STREET, KOWLOON, HONG KONG

telephone: 3-7115111 telex: 44488 LIGHT HX

cables: LIGHTPOWER HONG KONG.

our ref: MA37.1(A1)/L.585/82/WFS

Mr. A. J. Havelock,

Department of Industry,

Ashdown House,

123 Victoria Street,

London SW1E 6RB,

U.K.

Dear Mr. Havelock,

your ref:

Please address all letters to the Company

9th April, 1982.

GPC/CLP Visit to the U.K. March 1982

We should like, on behalf of all members of the GPC and CLP team, to thank you sincerely for the detailed arrangements and warm reception given to us during our visit to the U.K. Through the very hard work which you have put in personally, we were able to visit the associated plants and factories and to hold discussions with Government Officials, making our visit to the U.K. a success.

The visits and technical discussions at the GEC works have enabled us to acquire a deeper understanding of GEC's competence in manufacturing large size turbine generators and we have been deeply impressed by their manufacturing technology.

Through your kind arrangement, we had the opportunity of discussing with Government Departments and Bankers the question of loans and finance, enabling us to acquire an understanding of the possible terms of loan which could be offered by the U.K. We greatly appreciate your arrangement and the warm reception given to us by the Ministers and would be grateful if you could convey our sincere thanks to them.

We shall continue to communicate and study further matters associated with finance as well as questions related to HP blading design and thermal efficiency. We would like to seek additional information on these aspects.

The major problem which exists at this moment in time is the guarantee associated with the 40% equity holding of the Hong Kong Nuclear Investment Company. This must be resolved before the project can proceed further.

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967.233-08