GR 565
IMMEDIATE
CYPHP CAT A
CONFIDENTIAL
716
Akki by
64
>> MAY 1978
30. 51 L,
(Action Taken
112
FM BTC HONG KONG 190920Z
CONFIDENTIAL
TO IMMEDIATE PEKING TELNO BTC 40 OF 19 MAY 1978
AND TO IMMEDIATE FCO
INFO DO T (CRE4), DO I (IC2).
YOUR CREDA 103 TO DO T: COAL FOR POWER STATION.
INDEX
No
See 1120
ON MY RETURN, I HAVE SEEN THE EXCHANGES OF TELEGRAMS ABOUT SIR LAWRENCE KADOORIE'S VISIT AND SHARE YOUR FEARS ABOUT IT GOING
WRONG. IT SEEMS CLEAR THAT THE INVITATION RESULTS FROM THE PRIVATE CONTACTS OF MR DICK LEE AND THAT THE MINISTRY OF FOREIGN
TRADE HAVE NOT YET CONVERTED IT INTO A FORMAL OPPORTUNITY TO DISCUSS COAL PURCHASES.
2. SIR SIDNEY GORDON (CLP) CONFIRMS THAT KADOORIE'S TELEX MESSAGE
RECORDED IN PARA 1 OF MY TELNO BTC 37 TO YOU WAS A REACTION TO REMARKS BY PRICE (GEC) ON HIS RECENT VISIT TO CHINA WHICH WERE RELAYED TO KADOORIE BY LORD NELSON AND HENRY JACKSON. I HAVE NO COPY OF PRICE'S REPORT BUT LEARN IN STRICT CONFIDENCE FROM WEEDON (PLEASE PROTECT SOURCE) THAT PRICE CLAIMS THAT CHEN TO-PIN
TOLD HIM :-
A. THERE WAS CHINESE INTEREST IN COMPENSATION TRADING WITH THE
UK:
B. THERE HAD BEEN SUGGESTIONS OF COAL EXPORTS BEING OFF-SET BY
MINING EQUIPMENT PURCHASES DURING LI CH'IANG'S VISIT TO UK AND IN SUBSEQUENT DISCUSSIONS WITH OUR AMBASSADOR IN PEKING:
C. FOUR BRITISH COMPANIES HAD RETURNED TO UK TO PREPARE FINAL OFFER
FOR MINING MACHINERY. (PRICE QUOTES ''OTHER SOURCES' AS SUGGESTING THAT POTENTIAL NEED IS FOR 60 AUTOMATED COAL FACES
WORTH POUNDS STERLING 100-150 MILLION):
D. CHINESE WERE IRRITATED THAT THERE HAD BEEN NO FURTHER
DEVELOPMENTS FROM THE UK AND WERE WONDERING WHETHER EARLY DISCUSSIONS WERE JUST EMPTY TALK.
13. THIS
CONFIDENTIAL
i