PERSONAL AND CONFIDENTIAL
Foreign and Commonwealth Office
London SW1A 2AH
(1627)
MrQue Luny 2016.
Mr Thoug
Telephone 01-
DM March Esq
British Trade Commission
HONG KONG
Bear Deak
COAL FROM CHINA
NK. 1.
Your reference
HKK164|1
Our reference
*0.5
Date
2 & JUN 1978
DHOR OFFICE A INDEX
No
FEC 165/1
23 June 1978
PA
&
See lisa
Thank you for your letter of 9 June. I hope no-one in Hong Kong thinks we need convincing of the importance of this project nor about the opportunities which could be lost if
We have we gave the impression of being indifferent to it. been pressing for action here since Li Chiang's visit last year which indicated that the Chinese were interested in the proposal put to them through Teddy Youde last year, and would be looking to us to make proposals. As you now know, the first stage is almost completed and you and Peking will probably have seen Whitehall's ideas by the time you receive this letter. Things should move more quickly from now on, and Mr Dell should be able to give added impetus during his visit in August, depending on whether the current negotiations for mining machinery are successfully concluded (Peking tel No Indus 14).
2. I do not share your concern that the DOI are taking the lead in setting up the counter proposals. They made the original arrangements for UK firms to tender for the Power Station. And if the compensatory purchases are to be organised successfully, it will probably require wider ranging contacts with industry than CRE4 can hope to have. CREД are of course in the picture and we naturally encourage DOI to co-ordinate with and consult everyone who needs to be in the picture.
3. As you say Sir Lawrence is moving with considerable speed. I agree that it would be a good idea for one of your staff to be closely involved in what takes place in Hong Kong, although
I have no I do not see the need for him to go up to Peking. doubt that Emrys Davies will keep in close touch on what takes place there and will keep us all up-to-date. As you will have seen from Donald Murray's telegram we will go on keeping an eye on this.
yos
cc: E T Davies Esq, Peking
RJ McLaren Esq, HKGD
Lichard
RC Samuel
Far Eastern Dept