Addressed to:

File No.

199

DRAFT

RESTRICTED

BG Cartledge Esq Private Secretary 10 Downing Street. London SW1

Copies to: PS/SOS (FCO) PS/SOS (T) Secretary

Mr Bullock Mr Lippitt Mr Clark EFT Mr Havelock EPT Mr Macdonald IC2

1978

Originated by:

(Initials and date)

M

22/6

Seen by:

(Initials and date)

DEPARTMENT OF

Industry

Enclosures:

Draft litter

Type for signature of

PS/MINISTER FOR

INDUSTRY

(Initials and date)

SIR LAWRENCE KADOORIE

Thank you for your letter of 12 June about Sir Lawrence's

recent visit to China. As this Department is taking the

lead in developing a counter-trade scheme, we have agreed

with the Foreign and Commonwealth Office that we would

provide the draft reply though in consultation with them.

2 The purpose of Sir Lawrence's visit to China, from

which he has just returned was partly touristic and

partly to discuss the supply of coal for the power-

station being built in Hong Kong for Kesco. Kesco is

jointly owned by China Light and Power, of which Sir

Lawrence is Chairman, and the Exxon Corporation

of USA. The power station is scheduled to begin

operation in 1982 and ascend to full load over the

next 3-4 years. It would be able to burn either coal

or oil though the former is expected to be more economica

lants to be the wound fusd.

Fonn SS/29

DO NOT TYPE ON REVERSE USE A CONTINUATION SHEET 3917/391IL D531662 20M 9/77 TP

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