CC
PS/SECRETARY
MR. BENJAMIN PEP
MR. CORLEY
OT4
MR. DONALD
FCO
MR. HAVELOCK ←→
CONFIDENTIAL
Sir E. Youde KCMG.,
The Governor
Government House
HONG KONG.
GUANGDONG NUCLEAR
file
81
DEPARTMENT OF INDUSTRY
ASHDOWN HOUSE
123 VICTORIA STREET
LONDON SW1E 6RB
TELEPHONE
DIRECT LINE 01-212
SWITCHBOARD 01-212 7675
6904
14th December 1982
RAY
29 DEC 1982
OK OFFICEN INDEX...
PA
сё
M-Homme (KG)
انا ت ا
Enter FEC Kolicale
fi
24/12
5046
Christian Adams has I know passed to you a copy of my telegram reporting on the visit of Vice-Minister Li Peng to the UK (Indus 69 of 29th November). I am writing now to set out our thoughts on the Chinese proposal for further talks in early February on the financial and technical aspects of the project in Hong Kong and Peking respectively.
In discussion with Li Peng, I welcomed the prospect of further meetings. However, the timing of preparations for the two sets of meetings will require fairly careful thought.
You will not be surprised to hear that two main subjects emers from the talks with Li Peng:-
(i)
the off-take agreement for electricity between CLP and the GPC;
(ii) the proportion of equity in the project to be held
by CLP or other Hong Kong interests.
On (i) you will wish to consider whether approval can be given to such an agreement. This will depend, of course, on the to of the agreement which in turn will depend on what is proposed by CLP and GPC. But you may also have to take into account the interests of Hong Kong Electric.. The off-take agreement is in my view, the crucial issue.
On (ii) you will recall that I had proposed to the Chinese in Canton that CLP should reduce its equity state to 10% and that the Chinese should take up 90%. They reverted to this in the
/talks
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