GR 366 IMMEDIATE
EN CLAIR
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Conguit Deus Дай
TO IMMEDIATE F.C.O TELNO.BTC-6 OF 25 JANUARY 78,
INFO IMMEDIATE DOT (CRE4), DOI (MACDONALD I
IMMEDIATE PEKING.
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FOLLOWING REPORT ATTRIBUTED TO ASSOCIATED PRESS AND DATELINED
LONDON JANUARY 24 APPEARED IN TODAYS SOUTH CHINA MORNING POST
UNDER HEADLINE
CHINA SIGNS DOLLAR MILLION THREE-WAY DEAL
BEGINS
BRITISH AND CHINESE INFORMANTS DISCLOSED TODAY THAT AGREEMENT
HAS BEEN REACHED IN PRINCIPLE ON A MULTI-MILLION DOLLAR TRADE
DEAL INVOLVING BRITAIN, CHINA AND HONGKONG.
THE ACCORD, ARRANGED SECRETLY LAST MONTH IN LONDON BY THE BRITISH TRADE MINISTER, MR EDMUND DELL, AND HIS CHINESE COUNTERPART, MR LI CHIANG, WILL BE WORTH ABOUT US DOLLARS 500 MILLION TO BRITAIN IN ORDERS FOR MACHINERY, ACCORDING TO THE SOURCES. ONE BRITISH GOVERNMENT OFFICIAL OBSERVED, ''THE SIGNIFICANCE OF THIS THREE-WAY ARRANGEMENT, PROMOTED BY GOVERNMENT MINISTERS, CIVIL SERVANTS AND INDUSTRIALISTS WORKING TOGETHER, LIES IN THE FACT THAT IT PRESUPPOSES CLOSE CO-OPERATION BETWEEN BRITAIN, THE CHINESE AND HONG KONG OVER SOME YEARS TO COME''.
THE SOURCES, WHO DECLINED TO BE NAMED, SAID CHINA HAS UNDERTAKEN TO BUY ABOUT DOLLAR 300 MILLION WORTH OF MINING EQUIPMENT TO DEVELOP ITS CONSIDERABLE CO AL DEPOSITS AND OTHER MINERAL RESOURCES.
A SECOND ORDER WORTH APPROXIMATELY THE SAME AMOUNT MAY FOLLOW. CHINA APPEARS TO HAVE MORE COAL AND OIL THAN IT CONSUMES, BUT MUCH OF ITS COAL IS POOR-QUALITY SURFACE FUEL.
WITH DEEP MINING EQUIPMENT WHICH THE BRITISH ARE EXPERIENCED IN MAKING, THE CHINESE WILL BE ABLE TO MAKE THE BEST USE OF UNDER- GROUND SEAMS KNOWN TO EXIST IN MANY PARTS OF CHINA.
ULTIMATELY, INFORMANTS SAID, CHINESE DEVELOPMENT PLANS FORESEE THE PURCHASE OF UP TO DOLLAR600 MILLION WORTH OF MINING EQUIPMENT. ENDS
REPORT WAS FRONT PAGE NEWS IN THE COMMUNIST CONTROLLED WEN 'HUI PAQ AND HAS APPEARED IN OTHER CHINESE LANGUAGE PAPERS.
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