Addressed to:

DRAFT

File No.

Copies to:

PS/Sec of State Secretary

Mr Bullock

Mr Lippitt Mr Clark (or) Miss Mueller

Originated by:

(Initials and date)

AJM !2/5

CONFIDENTIAL

PRH Wright Esq

Private Secretary to the Prime

Minister

10 Downing Street

London SW1

Mr Havelock, MEPT Mr Macdonald, IC

Seen by:

(Initials and date)

Enclosures:

DEPARTMENT OF INDUSTRY

HONG KONG POWER STATION PROJECT

My Minister of State has seen your letter of 9 May

which recorded that the Prime Minister had asked that

HM Ambassador in Tokyo should be informed of the Prime

Minister's discussion of the Hong Kong power station

project with the Japanese Prime Minister the previous

day.

Type for signature of

(Initials and date)

by

The Minister of State agrees that we must keep HM

Ambassador in Tokyo informed about the China Light

and Power discussions. However, he is inclined to

doubt whether the British interest is best served

putting open pressure on the Japanese in respect of

this contract. If it became known that Britain had

exerted pressure on Japan not to put in as competitive

a tender as they might otherwise do (and if the Japanese

Government passed this message on to their industry,

as they would have to for it to become effective, it would almost certainly become public knowledge) the

For S$/29

DO NOT TYPE ON REVERSE USE A CONTINUATION SHEET 5829/514L D434481 4UM // 75 TP Qu 639

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