Good
GRISPS
Yes.
NEGOTIATIONS FOR MINING EQUIPMENT AND ANY FUTURE COMPENSATION DEAL COAL/MISING EQUIPMENT OR COAL/OTHER ITEMS WERE ANYTHING BUT QUITE SEPARATE.
THE
50 SIR LAWRENCE'S DISCUSSIONS WITH MINNETALS 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 SLME SAMPLES).
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 SIR LAWRENCE OVER AND ABOVE THE DAMING EQUIPMENT EXCHANGE BUT THEY ARE NONETHELESS READY ZG 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 GIR LAWRENCE WILL DE
CREATLY ENCOURAGED BY THIS. HE WILL WELCOME CONSULTATIONS WITH
DO IN HONG KONG ABOUT THE FORMULATION OF PROPOSALS AND IN MY VIEW THIS IS ESSENTIAL. HE IS LOOKNG 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 SPECIFICGI/ 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 CHICESE 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 DAG.
DAVIES