THE NEW SENTENCE ON VALIDITY OF THE LETTER TO READ:

''THIS LETTER SHALL REMAIN IN FORCE UNTIL 31 MAY 1979 OR SUCH

LATER DATE AS MAY BE AGREED BETWEEN THE BRITISH GOVERNMENT, YOURSELVES AND OURSELVES.'' (THIS MEETS KADOORIE BY BRINGING

IN H.M.G AND NIGHT APPEASE ECGD INSOFAR AS IT HINTS AT H.M.G INTEREST IN VALIDITY PERIODS).

6. YOUR INDUS 224 RAISES QUESTION OF ECGD INVOLVEMENT, I SUGGEST THAT UNTIL WE HAVE, IN THE NEXT COUPLE OF DAYS, AN AUTHORITATIVE KESCO REDRAFT IT WOULD BE PREMATURE TO DISCUSS WITH ECGD. HOWEVER

IF IT SEEMS NECESSARY, AS YOU ARE APPROACHING ECGD ON SECURITY FOR THE TRANSMISSION LINE (SEE SEPARATE TELEX), YOU CAN SAY THAT

DISCUSSIONS ARE TAKING PLACE IN HONG KONG ON THE BASIS OF THE

EXISTING DRAFT, AND THAT YOU EXPECT PROPOSALS, WHICH WILL NEED TO BE DISCUSSED WITH ECGD, ON MY RETURN.

MORRISON

CCN1 PARA (C) LAST LINE

AFTER FINAL WORD - LOST).

PARA (D) FIRST LINE

A RE-WORDING.....

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