RESPRIUMD

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in coal which would be supplied to the liong Kong power station. Se retary of State £ State pointed out the high quality of the mining equipment which had hoon developed for the NCB, which he believed would meet China's neede. Mr Li replied that his task was to make a beginning; technologists and engineers would be sent to study these matters in detail and he expected there would to frequent contact. Secretary of State asked if the Chinese intended to pursue fluidized bed combustion, coal liquifaction and gasification through contacts with technical staff. Ir Li suggested that Mr Yuan would make such decisions. The requirements of the end users came through hin and Mr Li's Ministry merely signed the contracts and paid the bills. He noted that Mr Yuar would be visiting a collieryz

5 Secretary of State referred to the formidable planning problem of investing £33 billion in energy (16 per cent of Ut investment), and the setting up of the Energy Commission to assist him in this task. He noted that the quickest return. case from measures to save energy consumption. He Li asked what specific methods ad the. Kin mind. Benneture of State responded that in the first place insulating houses gave an immediate return using existing technology in labour intensive activities. Secondly, an energy audit of industry was expected to be very effective. Energy saving equipment is also being developed for use in industry.

6 Mr Li asked about pollution,specifically mentioning the large number of care and the possibility of lead pollution from their exhausts. Secretary of State noted we also had sulphur pollution from burning coal and oil which lead to international problems. Greater economy in energy use would aloo reduce the risk of pollution. 7 Secretary of State asked about possible Chinese use of nuclear power stations. Mr Li replied that these were not being considered as China had so much coal and oil.

скла

GH STEVENS

CIPA

Room 1426 THS Extn 6583

2 DECEMBER 1977

Circulation: Those present

DE Tove.CRE4 D/Trade I Orr FED FOO

D Harding- 55CD, FUS Miss D Pone DEI- Defence

IC b/Industry.

HKGO

Peding

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