6. MY OWN VIEW IS THAT THE VISIT WAS A SUCCESS. IT IS CLEAR THAT THE CHINESE ARE INTERESTED IN A COMPENSATION DEAL BUT HAVE NOT FOCUSSED ON DETAILS. I SUSPECT THAT THEY MAY HAVE BEEN TAKEN BY SURPRISE BY SOME OF THE IMAGINATIVE IDEAS PUT FORWARD BY
R LAWRENCE OVER AND ABOVE THE MINING EQUIPMENT EXCHANGE BUT THEY ARE NONETHELESS READY TO LOOK AT ANYTHING.
70 THEY ARE WAITING FOR CONCRETE IDEAS AND THE NEXT STEP IS FOR US TO CLEAR OUR MINDS ABOUT THE SORT OF PROPOSALS WE WISH TO PUT FORWARD. I AM GRATEFUL FOR THE ACTION THAT IS NOW BEING TAKEN IN LONDON AND KNOW THAT SIR LAWRENCE WILL BE GREATLY ENCOURAGED BY THIS. HE WILL WELCOME CONSULTATIONS WITH DOI IN HONG KONG ABOUT THE FORMULATION OF PROPOSALS AND IN MY VIEW THIS IS ESSENTIAL. HE IS LOOKING TO THE DOI TO DO ALL THE COORDINATION WORK BUT IS PREPARED TO HELP IN ANY WAY HE CAN.
8. I THINK A VISIT BY A DOI TEAM WOULD BE MORE PRODUCTIVE IF THE CHINESE HAVE FIRST HAD THE OPPORTUNITY TO STUDY OUR PROPOSALS. IT IS UNLIKELY THAT THEY WILL COMMIT THEMSELVES IN DISCUSSIONS UNTIL THEY HAVE CLEARED THEIR LINES WITH ALL RELEVANT DEPARTMENTS. I THEREFORE RECOMMEND THAT I SHOULD TELL THE CHINESE THAT SPECIFIC PROPOSALS WILL BE SUBMITTED AS SOON AS POSSIBLE AND THAT A DO1 TEAM
T WILL COME TO PEKING WHEN THE CHINESE ARE READY TO RECEIVE THEM. THIS WILL HAVE THE ADDITIONAL ADVANTAGE OF FURTHER SEPARATING OUR PROPOSALS FROM THE CURRENT DISCUSSIONS BETWEEN THE CHINESE AND UK MINING MACHINERY COMPANIES WHICH ARE LIKELY TO REACH THEIR CLIMAX DURING THE SUMMER.
9. FULL RECORD OF KADOORIE'S CONVERSATION WITH SUN SUO-CHANG
FOLLOW BY NEXT BAG.
DAVIES
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