LART
AL
CONFIDENTIAL
PS/SECRETARY
I heilten
fells Tal. Abfar out!?
Ε
RE
2.
Aut.
cc: Mr Bullock
Pruu
57
HKK lex
Mr Lippitt
Mr Baker Ind Adv Mr Clark MEPT Miss Mueller
Mr Havelock MEPT
Mr Roberts CRE
Mr Mingay G
Mr Mann ECGD
Mr Morphet Energy
Mr Bryant OPG Mr Battersby IP
Mr Stewart cd
HONG KONG POWER STATION PROJECT
Following the reply of 16 May from No 10 Downing Street to PS/Mr Williams letter of 13 May, HM Ambassador in Tokyo has been given guidance on the appropriate response if the Japanese pursue further the issue of the China Light and Power contract. He will take no initiative on this matter but, if it is raised, he will say only that HMG attaches the greatest importance to British companies winning orders for new equipment. .He will not ask in terms that the Japanese Government should
intervene with their own industry.
2 In his attached telegram of 16 May the Governor asks whether he may inform Sir Lawrence Kadoorie of the discussion between the Prime Minister and the Japanese Prime Minister. It is our view, which is shared by the FCO and the Department of Trade, that he should not. Para 2 of the attached reply gives guidance on this point.
3 We have heard, via the Hong Kong office of Balfour Beatty that Sir Lawrence Kadoorie has expressed some surprise that no specific proposals have so far been put to him. We are not, in fact, yet in a position to do this. However, it is important that we impress upon Sir Lawrence that we are exploring various possibilities as quickly as we can. The attached draft telegram seeks to make this point.
4
The telegram should be sent by the FCO Mr Milton (Room K247) is the appropriate contact.
A J MACDONALD
IC2
Room 610 V/S
215-5015
19 May 197'7
63)