CODE 18 - 7

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mtem sabato unamun samman kunne stoma martu maavo kettaden, dette man dago batatas mana

Mr Duffy

HONG KONG: GENERATING EQUIPMENT FOR THE CHINA LIGHT AND POWER COMPANY

1. As agreed, I have spoken to Mr Gordon, the Assistant concerned in TRED, about responsibility for action on Hong Kong telegram No 268 on 12 March. He said that TRED cannot assume responsibility for dealing with individual country projects, though they are quite ready to give advice and assistance. I told Mr Gordon that the DOT, who had known that the Governor was going to telegraph about Sir Lawrence Kadoorie's visit, had already been in touch with us and that if he had no objection we would pursue the matter with the DOT/DOI.

Mr Gordon confirmed that TRED would have no objection and would be content to see a copy of whatever reply is sent to Hong Kong's telegram.

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2. The way is therefore clear, as the FUS's office has asked, for us to lead so far as the FCO is concerned. As you know, the PUS's office have asked for a draft of a telegram that Sir Michael Palliser could send in reply to the Governor on his (Sir Michael's) return to the Office on 16 March. Clearly, the more that we can say of substance in reply the better but that will depend on how far the DOT/DOI get in considering paragraph 4 of Hong Kong's telegram. can imagine that it may take some time to arrive at a considered view. In that event, I think we should provide the PUS with a draft interim reply. I attach a cockshy draft telegram which, subject to what the DOT/DOI have to say, might be served up to the PUS, with an accompanying minute, on 16 March. I should be grateful if you would consult Mr Roberts, DOT, and, if he is agreeable, asker him to sound out the DOI.

LAST

14 March 1977

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D.F. Mulhou Д

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D F Milton

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Hong Kong Department K 247

233 4381

cc: Mr Stewart

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