GR 245

PR RITY

CYPHER/CAT A

FM HONG KONG 270743Z

RESTRICTED

RESTRICTED

TOR

то

TO PRIORITY F.C.O TELNO.115 OF 27 JANUARY 78,

INFO PRIORITY PEKING.

YOUR TELNO.5 TO BTC: POWER STATION PROJECT.

HKK 164/1

NDEX

No

TO JAN 1973

PA

den Taken

b

See 30

1. A.P.A MET CHENG TO-PIN, VICE MINISTER OF FOREIGN TRADE (ON HIS WAY BACK FROM A VISIT TO BANGLADESH) ON 26 JANUARY. IN CONVERSATION ABOUT U.K-CHINA TRADE THE GENERAL MANAGER OF CHINA RESOURCES (HONG KONG) REFERRED TO THE RECENT A.P STORY (BTC HONG KONG TEL NO.6). CHEN/ WAS GENERALLY ENTHUSIASTIC ABOUT THE PROJECT BUT EMPHASISED THAT THE SUPPLY OF COAL AND THE PURCHASE OF MINING EQUIPMENT WERE ''SEPARATE QUESTIONS''. HE SAID NO CONTRACTS HAD YET BEEN SIGNED AND IMPLIED THAT THERE HAD BEEN SOME CONFUSION IN LONDON. HE DID

NOT MAKE IT CLEAR WHETHER HE THOUGHT THIS WAS IN OFFICIAL TALKS OR BY JOURNALISTS REPORTING THE STORY. IT WAS CLEAR FROM THE WAY HE DISCUSSED IT THAT CHENG SAW NO LINKAGE BETWEEN THESE TWO PARTS

OF THE PROJECT BUT IMPLIED THAT BOTH WERE AREAS IN WHICH CHINA

EXPECTED CONTRACTS TO BE SIGNED. HE DID NOT MENTION ANY FIGURES.

2. YOUR PARA.7 : THE COMMUNIST PRESS HERE NOW HAS CONSIDERABLE FREEDOM IN CHOOSING NEWS STORIES. THIS WAS CLEARLY REFERRED TO

AS AN A.P REPORT. IT WAS PROBABLY CARRIED AS A PRACTICAL EXAMPLE

OF CHINA PROVIDING GOODS FOR HONG KONG IN LINE WITH LI CH'IANG'S OCTOBER 1977 RED FLAG ARTICLE. NEITHER WE NOR BTC THINK THAT PUBLICATION IMPLIES OFFICIAL SUPPORT FOR A SPECIFICALLY LINKED.

SCHEME AS DESCRIBED IN THE REPORT.

MACLEHOSE

FILES

HK & GD

FED

TRED

AID-

Hong Kong Power Station Project

COFIES TO:

CRE 4 DOT

MR. MACDONALD IC2 DOI

26

OID NEWS D MR.CORTAZZI MR. MURRAY MR. THOMAS

RESTRICTED

+

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