Mr R Egan IC2
LAGI
RAY
P.A
t
HONG KONG POWER STATION PROJECT
NOT
RECEIVED
Reference
CC
MM/261/027
fai
HKK 164/1
Mr C W Roberts
Mr Stewart
CRE
400
•MY Orr-EY NC. 900
2.3 AUG 1768
DES
REWS RY
INDEX
CLON T
I refer to your minute of the 18 August to Mr C W Roberts copied to me. I feel strongly that the possibility of a barter deal is one that should be fully explored as soon as possible with the Chinese by whatever mechanism is appropriate in this particular market.
My reasons for saying this are first, that the China market is of considerable importance to our mining machinery industry and secondly, we must ensure that we are not outflanked by our competitors, particularly from FGR and Japan, both of whom are active in this market.
The UK companies concerned, and there are really only three who would take the lead in any negotiations, have, because of the confidentiality that surrounds the Hong Kong Project, received only the barest hint from us. I suggest that they are now brought very much more into the picture and asked to contribute a brief for Mr Lippitt. The companies concerned are anxious to secure business in China and have a good record of trade with China to their credit. Mr Siddall, Deputy Chairman of the NCB has recently returned from China and may also be able to contribute.
The Sino-British Trade Council is sending a delegation to China next month, and will include Mr Thorpe, Chairman and MD of Anderson Strathclyde who sits on the Mining Machinery SWP. This might afford another opportunity for discussing a barter deal provided Mr Thorpe could be brought into the picture beforehand.
If you would like me to take any action on these matters please let me know.
L K FORSTER
M2
Room 630
Abell House
22 August 1977
1