CONFIDENTIAL

4. It goes without saying that we are interested in getting mining equipment to China: I remember Chai Shu-fan mentioning this to me last March, and it is obviously a sector in which, generally, the Chinese are just as interested. (On a related subject, the DOI have recently learned that the Chinese have accepted an invitation from the National Coal Board to send a delegation here in October for an international conference on remote control and monitoring in mining.) It seems to me therefore that our best course is to show ourselves to be good suppliers of mining equipment i.e. to be promoting sales on the merits of the equipment and if in due course a desire on the part of the CLP for Chinese coal gives us something of an inside track against our competitors, so much the better.

V

DF Murray

ce: Sir Murray MacLehose, GBE, KCMG, KCVO

Hong Kong

RC Samuel Esq

Far Eastern Dept, FCO

A J Macdonald Esq, IC2, DOI

CONFIDENTIAL

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