RUTRICTLD

Mr Martin (FUD G 124/G)

Pla

HK 164/1

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Du

DILVER JUBILLL WEEK: POSSIBLE INVITATION FOR VISITORS FROM HONG KONG

1. As you suggested, Mr Heyhoe, 19 to Sir Peter Carey in the DOI, telephoned me yesterday afternoon to enquiry whether the FCO could” arrange for Mr Michael Kadoorie, the son of the Chairman of the China Light and Power Company (CLF) and Mr tones, the company's Deputy General Manager, to be invited to functions taking place during Silver Jubilee week. I understand that you had previously advised Mr Reyhoe that it was up to KGD to make out a case for these two persons to receive invitations.

2. As Mr Heyhoe may have explained to you, the CLF, one of the two electricity undertakings in Hong Kong, will have to reach decisions later this year about ordering: generating equipment for use in the 1980s. The Cl has bought British equipment in the past and Sir Lawrence Kadoorie would like to do so again. The snag is that the Japanese would be able to supply equipment at about 30% below the price at which British firms could meet the CLF's order. If this price differential remains, Dir Lawrence hadoorie would not have the support of his board if he still wished to place contracts with British firms. with a view to overcoming this problem, Sir Lawrence Kadoorie and fir Stones visited London at the end of March. They were seen by hr Alan williams, the Minister of tate concerned in the DCI, and Bir Feter Carey in the first instance and later by the rime inister himself. Lord Goronwy-Roberts would also have seen the two visitors but a meeting could not be arranged during the limited time which they had in London. The prelude to Sir Lawrence Kadoorie's visit was a message from the Governor of Hong Kong to the EU and there have been subsequent exchanges between Dir Peter Carey and the Governor. The DOI attach very great importance to trying to win the business for Eritish firms (GLC are principally concerned) which would be important both in financial terms (about

150 millions) and in employment terms in the UK.

3. The CI are setting up a joint whitehall/industry group to consider whether some special arrangements can be made to supply the CF with generating equipment at a price which would come closer to matching the price at which the Japanese could supply equipment. The next important stage will be the visit of Mr Kadoorie and Mr Stones at the end of May. They will be here for about a fortnight and the XI understand, I am sure correctly, that Mr Ladoorie and Mr stones are timing their visit to London to coincide with the Silver Jubilee week in the hope that they may get in on some of the functions. As Mr Heyhoe will have told you, the Dul have set aside two of their allocated tickets for the Queen's Birthday Parade on Saturday morning, 11 June, for the visitors. we in this department think that there is a good case for trying to arrange for Mr Kadoorie and Fir tones to be invited to the other functions. 1 believe that those who are aware of the importance of the CLP contracts, eg the JUL/Mr Cortazzi and even No. 10, would agree that we should make every effort to "sweeten" the visitors in this way. I appreciate that it would be very

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