1
GRS 530
PRIORITY
CYP CAT A
FM PEKING 110830Z MAY
CONFIDENTIAL
38
CONFIDENTIAL
130)
76"
148
TO PRIORITY HONG KONG TELNO 24 OF 11 MAY.
INFO ROUTINE FCO AND DOI (FOR SIR PETER CAREY).
136
98
13 MAY 1977
HKK 16+/
YOUR TELNO 464 TO FCO AND LETTER OF 28 APRIL (JUST RECEIVED)
NEW POWER STATION IN HONG KONG
1. FROM THE PEKING POINT OF VIEW THERE ARE TWO ASPECTS TO THE PROBLEM. THE FIRST IS WHETHER CHINA COULD AND WOULD AGREE TO SUPPLY THE COAL, THERE ARE SOMETIMES LOCAL SHORTAGES OF COAL IN CHINA AND LAST YEAR COAL SUPPLY WAS TEMPORARILY AFFECTED BY EARTHQUAKES IN TANG SHAN, ONE OF THE MAJOR PRODUCING REGIONS, EVEN SO, GIVEN THE SCALE OF THE COAL INDU STQ ON THE MAINLAND THERE IS LITTLE DOUBT THAT CHINA COULD BECOME A MAJOR SUPPLIER IF SHE SO WISHED. AS REGARDS HER WILLINGNESS, THERE IS RECENT EVIDENCE OF CHINESE INTEREST IN LONGTERM ARRANGEMENTS FOR THE EXPORT OF COAL AND OIL. IN THE DISCUSSIONS BETWEEN THE JAPANESE KEI DAREN AND THE CHINESE MINISTRY OF FOREIGN TRADE THE LATTER SHOWED INTEREST IN SUCH AN ARRANGEMENT WITH
*
JAPAN. THIS NEW-FOUND ENTHUSIASM IN THE MINISTRY FOR LONGTERM ARRANGEMENTS (IT WAS NOT EVIDENT IN THE JAPANESE DISCUSSIONS LAST YEAR) MAY ACCOUNT FOR THE RATHER MORE INTERESTED REACTION ON THE PART OF CHINA RESOURCES
REFERRED TO IN YOUR TELNO 464.
2.
POLITICALLY, FOR CHINA TO BECOME A REGULAR SUPPLIER OF COAL TO CHINA LIGHT AND POWER WOULD FORGE ANOTHER USEFUL LINK BETWEEN THE MAINLAND AND THE COLONY. IT IS NOT POSSIBLE TO PREDICT WHAT THE POLITICAL CIRCUMSTANCES
CONFIDENTIAL
/WILL BE
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