NOFS 23/09
00 DTI
PEKING
GR 1/3
CYPHER/CAT A
HRK 164/1
15 D
FM ETC HONG KONG 3832152
CONFIDENTIAL
ХХ
08304/9
CLI
NO DISTRIBUTION
TOPIX-DOT De
Re
TO IMMEDIATE D.T. I TELNO.CREDA 305 OF 3 DECEMBER 77,
INFO IMEDIATE PEKING.
RETRES (2)
RO PUSA) (→) Ro Kiza
270
хо
FOR LOVE, CREA FROM DAVIES.
I HAVE JUST SEEK THE PECORD OF LI CHIANG'S CALL ON THE SECRETARY OF STATE FOR TRADE. Y RECOLLECTION IS THAT WHILE LI SPOKE OF THE SUPPLY OF COAL TO THE H.K POWER STATION AND THE IMPORT OF U.K MINING MACHINERY IN THE SAME BREATH, HE DID NOT MAKE THE LINK AS SPECIFIC AS THE RECORD SUGGESTS. HE DID NOT, I BELIEVE, SAY THAT THE SUPPLY OF COAL WAS CONDITIONAL ON THIS BEING THE MEANS OF PAYING FOR THE MACHINERY. THIS MAY TURN OUT TO DE A CRUCIAL FOINT (SEE FOO TEL NO.536 OF 7 DECEMBER TO HONG KONG AND BTC'S PEPLY, TELNO.5TC 193 TO FCO) GIVEN THAT THE IMPRESSION DURING THAT CALL (AND CONSEQUE! TLY AT THE COMMERCIAL COUNSELLOR'S LINER ON 5 DECEMBER) WAS THAT THEY ICHED TO NEGOTIATE THE 1. PORT OF THE MACHINERY AS SCOL AS FOSSILE.
VARCH
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