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PS/SECRETARY

CONFIDENTIAL

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cc: Mr Bullock Mr Lippitt

Mr Baker IA

Mr Clark MEPT

Mr Roberts CRE

Mr Mingay G

Mr Mann ECGD

Mr Morphet Energy

Mr Bryant OPG

Mr Lane Treasury

Mr Stewart FCO,

HONG KONG POWER STATION PROJECT

The attached telegram from the Governor of Hong Kong takes issue with the guidance which was given last week that he should not inform Sir Lawrence Kadoorie of the Prime Minister's recent discussion of the Hong Kong project with the Japanese Prime Minister. The Governor points out that, as Sir Lawrence is likely to hear of the discussion anyway, it would be preferable for him to be told of the conversation by the Governor.

2

We have to be guided by the Governor's judgment in this. The fact remains that we do not wish Sir Lawrence to know exactly what transpired at the meeting of Prime Ministers. We have had evidence that Sir Lawrence has given a full account of his own meeting with the Prime Minister in March to friends in Hong Kong, and we do not want the Prime Minister's recent remarks to be similarly reported. The attached reply seeks to ensure that Sir Lawrence is told only in general terms of the Prime Ministers' conversation.

3

This telegram should be sent in cypher by the FCO (Mr Milton in Room K247 is the appropriate contact).

As Mandmad

A J MACDONALD IC2

Room 610 V/S 215-5015

23 May 1977

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