CONFIDENTIAL

Mr Duffy

16 MAR 277

E

HAK 164!1

HONG KONG: GENERATING EQUIPMENT FOR THE CHINA TIGHT AND TOWER COMPANY

1. As agreed, I have spoken to Mr Gordon, the Assistant concerned in TRD, about responsibility for action on Hong Kong telegram No 268 on 12 March. He said that TRLD 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. 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 US's office has asked, for us to lead so far as the FCO is concerned. As you know, the FUD's office have asked for a draft of a telegram that Sir Michael ralliser 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/DCI have to say, might be served up to the FUS, with an accompanying minute, on 16 March. I should be grateful if you would consult Mr Roberts, DCT, and, if he is agreeable, asked him to sound out the DOI.

14 March 1977

cc: Mr Stewart

Joeles

DF Milton Hong Kong Department K 247

233 4381

Encl

CONFIDENTIAL

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