تا

PP TC HONG KONG

GR 150

CYPHER CAT A

FM DOT 161778 Z

.HKK. 164 ||

21

164/1

No. 75.24

HYG

FED

fees

TRED (2) PUSD (2

(2)

2+9

CONFIDENTIAL

TO PRIORITY 3TC HONG KONG TELNO CREDA 355 OF 16 NOVEMBER

CHINESE MINISTER OF TRADE ARRIVES IN UK ON 23 NOVEMBER: WE SHALL NEED

TO BRIEF MINISTERS AT OUT SIR LAWRENCE'S SUGGESTION OF A UK MINKS MACHINERY/CHINESE COAL DEAL. OUR VIEW IS THAT POWER STATION DID WILL,

IN THE LAST RESORT, DE JUDGED COMMERCIALLY AND ANY MINING MACHINERY DEAL SHOULD BE ON A STRICTLY COMERCIAL DASIS - HETHER IT IS ARRANGE VIA CLP OR AS AN INDEPENDENT UK/CHINA DEAL.

2. RATEFUL IF YOU WOULD SPEAK INFORMALLY TO SIR LAURENCE ABOUT

HOW HE SEES THE FINANCIAL ASPECTS OF HIS SUGGESTION WORKING OUT IN

PRACTICE. HE APPEARS TO ENVISAGE AN ARRANGEMENT INVOLVING DEFERRED

PAYMENTS BY THE CHINESE - IS THE EARLY SUPPLY OF UK MACHINERY TO BE

PAID FOR LATER BY SALES OF COAL TO CLP: WE WOULD LIKE TO KNOW IN MORE DETAIL WHAT HE HAS IN HIND. PLEASE ENSURE SIR LAWRENCE DOES NOT

GAIN IMPRESSION THAT HNG WILL MAKE ANY UNIQUE ARRANCEMENTS FOR

FINANCING UK MINING MACHINERY EXPORTERS WHILE CLP WAIT FOR PAYMENT

DY WAY OF COAL.

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