RR PEKING
GR 235
CIPHER CAT
(147.
十
HK164 RECEIVE 19
NO DISTRIBUTION
? ^JUN 1978
OFFICER
FM HONG KONG 1901362
INDEX
PA
CONFIDENTIAL
No las
ADVANCE, COPY
REGRY Acton Taken
TO PRIORITY F C O TELNO 748 OF 19 JUNE 1978.
на те
Hd HK GD
FE TRED
ff) are submettuce Mr. Murray
-draft reply. Then
will clear
clear walt
INFO PEKING.
PERSONAL FOR CORTAZZI, DUS S.
BTC TELNO INDUS 67: COAL FROM CHINA. &
.0.1.
148
бот. DOT. (CRE 4)
I HAVE DISCUSSED KADOORIE'S PLANS WITH BOTH HIM AND MARCH. KADOORIE WAS RIGHTLY ENTHUSED BY HIS VISIT TO CHINA. HE ALSO
APPRECIATES THE MAGNITUDE AND COMPLEXITY OF THE COMMITMENTS HE MAY HAVE TO UNDERTAKE OR ARRANGE FOR OTHERS TO UNDERTAKE IF COMPENSATORY TRADING IS REALLY TO GET GOING.
2. I SEE NOTHING BUT GOOD IN A DEAL WHICH USES HONG KONG'S COAL PURCHASES TO BOOST BRITISH EXPORTS TO CHINA. BUT I ALSO SEE TROUBLE AHEAD IF WE CANNOT MAKE CLEAR PROPOSALS TO THE CHINESE
SOON, OR SUBSEQUENTLY GET THE DEAL WELL ORGANISED AND PUSHED WITH DETERMINATION.
3. I AM THEREFORE GLAD TO HEAR THAT BENJAMIN (DOI) PLANS TO COME
HERE IN JULY AND THEN GO ON TO PEKINGM IT WOULD BE HELPFUL IF MARCH WERE GIVEN AN ADVANCE PICTURE OF HOW LONDON ENVISAGES
COMPENSATION TRADE ARRANGEMENTS, SO THAT HE CAN FIND OUT WHETHER IT IS COMPATIBLE WITH KADOORIE'S THINKING.
4. FOR MY OWN PART I THINK COMPENSATION TRADE SHOULD NOT BE DIFFICULT PROVIDED TO START WITH IT IS CONFINED TO A FEW LARGE WELL DEFINED PROJECTS.
5. SINCE MUCH COULD BE INVOLVED BOTH COMMERCIALLY AND POLITICALLY IT WOULD BE HELPFUL IF YOU KEPT A PERSONAL EYE ON THIS VENTURE.
MACLEHOSE
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