GR 215 PRITY

EN CLOR

set bo

HK4-0

Com

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FM BTC HONG KONG 021020Z

UNCLASSIFIED

TO PRIORITY F.C.O TELNO.BTC.42 OF 2 MAY 78,

HKK Moy!

INDEX

No

- 3 MAY 1978

OFFICER

NO.

RE

RY

Action Taken

See (702

INFO PRIORITY D.O.T (CRE4), D.0.1 (MACDONALD 1C2), PEKING.

THE ASIAN WALL STREET JOURNAL OF 28 APRIL CARRIED AN ASSOCIATED PRESS REPORT, DATELINED LONDON UNDER THE BY-LINE OF ARTHUR GAVSHON, IN WHICH THE GOVERNOR WAS SAID TO HAVE CITED THE FOLLOWING AS AN EXAMPLE OF GROWING CO-OPERATION

BETWEEN CHINA AND HONG KONG :-

"HONG KONG AUTHORITIES ARE DISCUSSING POSSIBLE PURCHASE

OF UP TO THREE MILLION TONS OF COAL A YEAR TO SERVE A PLANNED DUAL-FIRED COAL AND OIL-BURNING POWER STATION, WHICH A BRITISH CONSORTIUM HAS CONTRACTED TO BUILD IN THE NEXT FEW

YEARS AT A COST OF AROUND DOLLARS TWO HUNDRED MILLION. THE CHINESE SIMULTANEOUSLY HAVE UNDERTAKEN TO BUY ABOUT DOLLARS THREE HUNDRED MILLION OF MINING EQUIPMENT FROM BRITAIN TO

DEVELOP THEIR MINERAL AND COAL RESOURCES. IF PRICE CONDITIONS ARE RIGHT, CHINA PRESUMABLY WILL GET THE CONTRACT TO SUPPLY HONG KONG ALTHOUGH AUSTRALIA IS ALSO A POSSIBLE COAL SUPPLIER.

THE HONG KONG STANDARD OF 28 APRIL CARRIED A SHORTER REPORT ON THE SAME SUBJECT, ALSO DATELINED LONDON BUT NOT ATTRIBUTED

TO A.P.

2. YOU WILL RECALL A SIMILAR REPORTED UNDERTAKING LAST JANUARY,

ALSO ATTRIBUTED TO A.P (OUR BTC6 OF 25 JAN REFERS). WE ARE RESPONDING TO LOCAL ENQUIRIES AS ON THAT OCCASION.

MORRISON

FILES

FED

HK & GD

ES & SD MR MURRAY

[PASSED BY COD]

COPIES TO CREA DOT

MR MACDONALD IC2 DOI

100

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