MODERN E VETHERA
•
Robarts, Esq.,
CRE A.
Department of Trade, Victoria Street.
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"CH/LANCA (3)
27 June, 1977.
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125
1.1.
In the course of discussions which I have had with Sir Lawrence Kadoorio and his colleagues on the CLP/TAP00 weard about the Hong Kong power station project there have been severă. roferences to Chinese coal for the new stacion possibly linked to sales of british coal mining equipment to the Chinese.
2.
During Alistair Macdonald's recent visit ve drew attention to the offer in paragraph viii of Lippict's message (your tel BTC 40 of 4 June) to provide assistance to facilitate such a development, I should also record that when I made my introductory call on the Daputy General Manager of Clúna Resources ha told me that the matter was being considered in Peking. I got a similır ressage from the Generel manager of the Bank of China. Both commented that they Kora puzzled because they had observed that hitherto CLP had relied on oil as the source of fuel for their power generation, I pointed cut that CLP were following the nodem philosophy of opting for dual fired facilities and said that we hoped the Chinose response would be positive,
3.
Howard Duncan, the EXXON representative on the CLP/PEPCO Boerd, has now cant me copies of correspondence which he has conducted with China Nesources from which you vill see that the Chinese have said that they find it fiffiendt at this stage to cater for CLP's requirements "as it involves supplies too far ahood". Nevertheless, the principle to supply coal to Hong Kong has not boen rejected and the way may be open for Emrys Davies in Peking to discover how seriously the Chinese have considered the prospect of linking coal sales to imports of British machinery. I must, of course, leave it to you to decide how and when to press the Chinese in Peking but clearly some sort of preliminary decision has been reached. Meanwhile, I have suggested to CLP/PEPCO that they should leave the running to us in accordance with the undertaking given in Lippitt's message.
c.c. with enclosures
D. H. Harch
Senior British Trade Commissioner
1.2. the Governor Siz Muray MacLehose, GBC, KCMG, KOVO.
D. Davies, Esq., Peking.
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