No. 50
28 JUN 1978
DEEK OFFICER
PA
REGISTRY Action Taken
(167
00 PEKING
CO BTC HONG KONG
GRS210
DESKBY 280100Z
CYPHER CAT A
FM DTI 271835Z
FE
REC
INDEX
HKK 164/1
REASO
INDEX
29 JUN 1978 RED (2)
OFFICER
PA
2912
LENKY D
Beel. 179
CONFIDENTIAL
DESKBY 280100Z
TO IMMEDIATE PEKING TELNO INDUS 24 OF 27 JUNE
AND TO IMMEDIATE BTC HONG KONG.
163
YOUR INDUS 14: HONG/CHINA COUNTER-TRADE
WE CONFIRM THAT BENJAMIN'S VISIT TO PEKING IS POSTPONED BUT MOT (UNDERLINE) HIS DISCUSSIONS WITH KADOORIE.
2. WE WOULD BE GRATEFUL TO HAVE YOUR ESTIMATE OF THE DATE WHEN THE PROTOCOL FOR THE CURRENT MINING MACHINERY ORDERS WILL BE SIGNED: ALSO WE WOULD WISH TO KNOW IMMEDIATELY WHEN THEY HAVE BEEN SIGNED OR LOST TO THE COMPETITION. WE WILL KEEP IN TOUCH WITH THE FIRMS AT THIS END.
3. CHINESE EMBASSY HERE EXPRESSED DISAPPOINTMENT ABOUT THE DELAY AND HOPE SUBSTANTIAL PROGRESS CAN BE MADE BEFORE DELLS VISIT IN AUGUST. WE WILL THEREFORE SEEK AFTER DISCUSSIONS WITH KADOOR IE TO PREPARE PROPOSALS TO BE HANDED TO THE CHINESE AUTHORITIES AS SOON AS MINING MACHINERY PROTOCOLS ARE SIGNED,
4.
KADOOR IE HAS WRITTEN TO WILLIAMS, MINISTER FOR INDUSTRY, REPORTING THE OUTCOME OF HIS VISIT TO CHINA MUCH ON THE LINES OF INDUS 67 FROM BTC HONG-KONG. HE PROPOSES QUOTES THE CREATION OF A NEW ORGANISATION IN WHICH THE BRITISH GOVERNMENT (POSSIBLY INVOLVING THE N.C.B.) WOULD HAVE A DEFINITE INTEREST. UNQUOTE. HE EXPRESSES THE OPINION THAT THIS TYPE OF ORGANIZATION WOULD BE ЗЕ THE BEST MEANS OF DEALING DIRECT WITH THE VARIOUS DEPARTMENTS IN THE CHINESE GOVERNMENT. WE UNDERSTAND THE NEW ORGANISATION WOULD SEEK TO SELL CHINESE COAL ON THE WORLD MARKET AND WOULD BEGIN OPERATIONS BEFORE CLP BEGAN ITS COAL PURCHASES. IT IS NOT CLEAR WHETHER THIS BODY WOULD ALSO BE AN AGENCY FOR SELLING GOODS TO CHINA. YOUR URGENT ASSESSMENT OF HOW THE CHINESE MIGHT REGARD THIS IDEA IS REQUESTED.