2.
SIR LAWRENCE MADE HIS POSITION VERY CLEAR 30TH TXSUS AND
THE CHINESE:
(1) HE IS NOT A TRADER AND HIS ONLY BUSINESS OBJECTIVE IS TO BUY COAL:
(11) HE SEES A COAL/MACHINERY DEAL WITH CHINA AS AN EXCELLENT
COMMERCIAL OPPORTUNITY FOR BRITAIN AND IS PREPARED TO ASSIST IN ANY WAY HE CAN TO BRING THE RIGHT PEOPLE TOGETHER.
(111) THE KEYNOTE IS FLEXIBILITY AND SIR LAWRENCE STRESSED THAT THE COAL COULD BE EXCHANGED FOR MINING EQUIPMENT, ELECTRICAL GENERATION EQUIPMENT, PORT CONSTRUCTION EQUIPMENT OR INDEED ANYTHING ELSE THE CHINESE WANTED.
(IV) HE FLOATED THE IDEA OF COOPERATION OVER ELECTRIFICATION
OF THE SHUMCHUN-CANTON RAILWAY AND THE ESTABLISHMENT OF A UNIFIED ELECTRICAL GRID BETWEEN HONG KONG AND CANTON WITH ELECTRICITY SUPPLIED BY THE NEW POWER STATION.
3.
HE EXPLAINED PRIVATELY TO ME THAT APART FROM HIS INTEREST IN BUYING COAL HE SEES AN ADDITIONAL ADVANTAGE IN UK-HONG KONG- CHINESE COOPERATION AS A MEANS OF ASSISTING THE STABILITY AND CONTINUITY OF HONG KONG. HE ESTIMATES THAT THE VALUE OF PURCHASES OF COAL FROM CHINA WILL REACH £100 MILLION PER ANNUM AT TODAY'S
PRICES.
40
DURING DISCUSSIONS WITH SIR LAWRENCE, SUN SUO-CHANG SAID CATEGORICALLY THAT CHINA COULD SUPPLY COAL FOR THE POWER STATION. HE REFERRED TO THE ORIGINAL PROPOSAL FOR THE SUPPLY OF COAL FOR MINING EQUIPMENT PUT FORWARD BY HM AMBASSADOR LAST YEAR AND SAID THAT AFTER CAREFUL STUDY THE CHINESE FOUND THE IDEA CONSTRUCTIVE AND POSITIVE. HE EXPLAINED THAT CHINA HAD NO EXPERIENCE OF COMPENSATION DEALS BUT WAS PREPARED TO LISTEN TO ANY PROPOSALS, HE STRESSED THROUGHOUT THAT HE WAS WAITING FOR SPECIFIC PROPOSALS FROM OUR SIDE. AT NO TIME DURING THE DISCUSSION OR DURING MY LUNCH DID SUN SAY ANYTHING TO SUGGEST THAT THE PRESENT NEGOTIATIONS FOR MINING EQUIPMENT AND ANY FUTURE COMPENSATORY DEAL COAL/MINING EQUIPMENT OR COAL/OTHER ITEMS WERE ANYTHING
BUT QUITE SEPARATE.
THE
5月 SIR LAWRENCE'S DISCUSSIONS WITH MINMETALS WENT WELL. CORPORATION WERE NATURALLY NOT IN A POSITION TO DISCUSS THE BROADER ASPECTS OF THE DEAL BUT MADE IT CLEAR THAT THEY WERE KEEN TO SUPPLY COAL, DETAILS OF WHICH WOULD BE DEALT WITH BY THE KESCO TEAM (THEY WILL TRAVEL TO TATUNG TO EXAMINE THE COAL AND TAKE HOME SAMPLES).