DRAFT
PRIME MINISTER'S MEETING WITH CHINESE MINISTER OF FOREIGN TRADE 30 NOVEMBER
CHINESE COAL FOR HONG KONG POWER STATION
246
The Prime Minister will recall meeting Sir Lawrence
Kadoorie (Chairman, China Light and Power Co)
twice this year in connection with HMG's proposals
for supplying UK plant and equipment for CLP's new
power station in Hong Kong. Sir Lawrence envisaged the
power station project leading to increased trade
between China, Hong Kong and the UK and a strengthening
of the existing political and economic ties.
He had in mind a triangular deal in which UK coal
mining machinery was supplied to China and paid for by
supplies of Chinese coal to the new power station in
Hong Kong. The possibility of a deal on these lines
Peking
was broached by HM Ambassador in Hong Kong to the
Vice-Minister of the Coal Industry in July and although
the Chinese reply was non-commital they did express
interest and the Ambassador thought their response
encouraging.
We are
No decision has yet been made by CLP on the UK bid to
supply power plant but we are becoming increasingły
hopeful that the contract will be secured.
confident that the power station project will not be
affected by the success or failure of a Chinese coal deal
and our aim should thereforebe to supply coal mining
machinery on terms as advantageous as possible to the UK.
If there is to be a triangular barter arrangement we
A