4
over did not wish to propose anything contrary to Mr Sun's ideas. His objective was to buy coal. He did not wish to cause complications unnecessarily but would be pleased to assist with proposals that were to everyone's advantage. Mr Sun indicated that he clearly understood Sir Lawrence's position.
11.
By
Sir Lawrence went on to say that after completion of the
4 x 350 mg sets there were plans to construct 4 x 500 mg sets by about 1990. That meant that in little over 10 years time the demand for coal would increase to 6 million tons per annum.
then the electrical capacity would amount to 5,600 megawatts (2,200 mg present capacity and 3,400 mg added by the projects described above). This was necessary in order to meet the 12% annual increase in demand in Hong Kong. Mr Stones asked Mr Sun if he thought the exchange deal they proposed was preferrable to a cash deal. In reply Mr Sun said that in the past the Gang of 4 had opposed compensation deals of the kind originally proposed by Sir Edwarde Youde. But compensation deals were a normal method of trading throughout the world. China had no experience of deals
of this kind and this would be the first of its kind. Since the
removal of the Gang of 4 they were free to look at this type of trade and were ready to listen to any proposals. But in any case China could sell coal to Hong Kong.
12. Mr Stones said that they would need coal by 1981 to start building up stocks. But they could if necessary take coal earlier (1980) if China wished. At this stage it was very impor- tant to know if they could get coal from China. If not they would
have to buy elsewhere, from Australia, India or South Africa. But
he stressed that they wanted to buy from China because they belie- ved that it was right to do so. Mr Sun replied "The answer is
affirmative. You will get the coal."
13. Sir Lawrence added that the new power station could burn
coal or oil. But he predicted that in 15 years time oil would no longer be used: coal was cheaper and better. Mr Sun agreed that oil was expensive and could not last long.