GRS 160
IMMEDIATE
CYP CATA
CONFIDENTIAL-
INDE
HKK 164/1
DES
PA,
Y
FM PEKING 9897502 DEC
CONFIDENTIAL
TO IMMEDIATE FCO TELNO 679 OF 08 DEC AND TO HONG KONG (FOR POLITICAL ADVISER) AND B.T.C. HONG KONG (FOR MARCH).
YOUR TELNO 536: CHINESE COAL FOR THE HONG KONG POWER
STATION
(266)
1. I STRONGLY AGREE THAT AN ANNOUNCEMENT ON THE LINES PROPOSED BY COI WOULD BE PREMATURE AND PREFER THE FORMULA YOU SUGGEST. WE ARE STILL A LONG WAY FROM CONCLUDING AN AGREE- MENT WITH THE CHINESE AND IF WE SAY TOO MUCH THEY WILL FEEL THAT WE ARE TRYING TO BOUNCE THEM INTO IT.
2. I WOULD HOWEVER HAVE NO OBJECTION TO A STATEMENT TO THE EFFECT THAT ''DISCUSSIONS HAVE BEEN INITITATED WITH POTENTIAL SUPPLIERS, (NEXT THREE WORDS UNDERLINED) INCLUDING THE CHINESE''.
3.
INCIDENTALLY, PARAGRAPH 2 OF YOUR TEL RECORDS LI CH'IANG AS HAVING SPOKEN ONLY OF THE SUPPLY OF CHINESE COAL WITHOUT REFERENCE TO THE POSSIBILITY OF AN EXCHANGE DEAL:
THIS MAY SIMPLY BE DUE TO THE ISOLATION OF HIS STATEMENTS
FROM THE CONTEXT.
YOUDE.
FILES
FED
HKGD
CONFIDENTIAL
COPIES TO:
MR.EGAN
DOT
MR. FORSTER
MR.LOVE
DOT.
MR.ASHWOOD)