CONFIDENTIAL.
B INFORM KEDOORIE, WHOM WE UNDERSTAND IS STILL TRAVELLING IN CHINA, THAT A COUNTER-TRADE SCHEME IS BEING DEVELOPED AND THAT DOI INTENDS TO HOLD CONSULTATIONS WITH HIM BEFORE A PRESENTA UN
TO THE PRC:
C.
REPORT ON INITIAL REACTIONS TO THIS INFORMATION AND ANY INFORMATION YOU HAVE ABOUT THE OUTCOME OF KEDOORIE'S TALKS ON
COAL SUPPLY.
40 FOR YOUR OWN INFORMATION WE HAVE IN MIND THAT IF THE OUTLINE
SCHEME GETS A FAVOURABLE RECEPTION FROM THE CHINESE WE MIGHT
SUGGEST SIMILAR SCHEMES BASED ON OTHER MINERALS FOR WHICH THERE
WOULD BE A READY MARKET. KU-MING REFERRED TO THE POSSIBILITY
OF BARTER IN NON-FERROUS METALS WHEN HE MET SECRETARY OF STATE
FOR TRADE ON 8 MAY.
5.
DOWTY HAVE SAID THAT COMPENSATION TRADING HAS NOT BEEN,
DISCUSSED IN CURRENT NEGOTIATIONS AND COMPANIES DO NOT INTEND TO
RAISE IT.
OWEN
FILES
FED
HKOGD
TRED
PUS D
E CON-D FRD
MR BUTLER MR. CORTAZZI MRTHOMAS MR MURRAY MR HAYES
COPIES
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MR OLD HAMIC DIVN, DOI MR BIRD.
ECG D
MR FORD HAM, TREASURY
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CONFIDENTIAL