Mr Murray
CONFIDENTIAL
HKK 164/1
> ▾ JUN 1978
DEK OFFICE
INDEX
/PA
Action Taken
Mr Quant
122 / vi
In Thompson
бо
నర
COAL FOR THE HONG KONG POWER STATION
A
1.
B
bd
с
A
E
You asked to be informed about Sir Lawrence Kadoorie's visit to Peking and to see a draft reply to Sir Murray Maclehose's telegram to Mr Cortazzi.
2.
We have had a telegraphic report from Peking of Sir Lawrence's talks with Mr Sun in the Ministry of Foreign Trade and have just received the promised full report.
The visit was clearly a success, and is now being followed up by a technical team from Hong Kong who are discussing the specification of the coal which will be needed. Sir Lawrence is full of ideas for items which could be used in the counter- trade proposals and for further co-operation between CIP and the Chinese eg the supply of electricity to China, electrification of the Hong Kong - Canton Railway etc, and Whitehall is having to run fast to keep up with him. For their part, the Chinese Ministry of Foreign Trade seem keen and anxious to get down to brass tacks.
3.
It is however unfortunate that the Chinese seem to be beginning to look upon Sir Lawrence as the co-ordinator of the compensation deal (para 15 of the full record). However, as the DOI's telegram INDUS 20 to Peking states, the DOI have now prepared outline proposals to put to the Chinese and are clearing them in Whitehall this week. They envisage telegraphing them to Hong Kong next week for consideration and will then ask Peking to pass them on to the Chinese. Mr Benjamin of the DOI will be in Hong Kong for a few days from 2 July and proposes to go on to Peking afterwards to present the proposals so that there will be no misunderstandings. The Chinese will then
be given some three or four weeks to mull over the suggestions before Mr Dell's visit, which will be used to maintain the impetus of the discussions.
4.
As they are the lead Department the DOI have taken over the preparation of the draft letter from the Prime Minister to Sir L Kadoorie (our Private Office has been informed). It is being cleared with us. I submit a draft reply to Sir Murray Maclehose. DOI, DOT and HKGD concur.
21 June 1978
J.T. Lass field.
JT Masefield Far East Dept
cc: Mr McLaren
HKGD
CONFIDENTIAL