CONFIDENTIAL
(1) THE CHINESE AUTHORITIES ARE CONSIDERING THE CLP
PROPOSAL, AND WILL BE RESPONDING THROUGH THE MINISTRY OF FOREIGN TRADE.
D. WE HAD A STIFF FEW MINUTES BECAUSE OF THE PUBLICITY GIVEN AND WE AGREED THAT ANY IMMEDIATE QUERIES FROM
THE PRESS WOULD FOLLOW THE LINE THAT IN RESPONSE TO THE CHINESE PROPOSAL DISCUSSIONS ARE CONTINUING.
SIR DEREK
HAS TELEPHONED THIS TO NCB'S PUBLICITY PEOPLE WITH
INSTRUCTIONS TO COMMUNICATE THIS TO DOT AND DOI PRESS
OFFICES. OUR MINING MACHINERY COMPANY NEGOTIATORS
HERE HAVE ALREADY BEEN TAXED WITH QUESTIONS ABOUT THIS
UNDESIRABLE PUBLICITY.
•
E. THE COALFIELDS TO BE DEVELOPED UNDER NCB ARE NOW
POTENTIALLY LARGER THAN PREVIOUSLY THOUGHT. NCB'S DESIGN
AND CONSULTANCY COSTS WILL BE MET IN CASH. BUT FOR
ORDERS OF UK EQUIPMENT CHINA WILL WANT THESE TO BE
FINANCED FROM PROCEEDS OF COAL EXPORTS. WE INDICATED
THAT NCB MISSION TO FOLLOW UP CAN PROCEED URGENTLY,
AND MEANWHILE WE WOULD BE CONSIDERING FINANCING MECHANISMS AGAINST THE DAY WHEN PLANT ORDERING WILL
START.
2. YOU CAN REASSURE SIR LAWRENCE ON THE LINES OF C
AND THAT WE HAVE SAID THAT HIS PROPOSAL HAS HMG SUPPORT. THIS WAS REPEATED BY SECRETARY OF STATE IN HIS FINAL MEETING
WITH LI CHIANG.
3. SIR DEREK EZRA IS REPORTING SEPARATELY ON THE DETAILS OF
K
E, WHICH WERE VERY FULL AND FRANK.
CRADOCK
FILES FED
ES SD
ECON D
TRED
NEWS D
HK YGD
PS/MR JUDD
COPIES TO:
MR ROYCE
MP-
HR
KNIGHTON, DEP|SE OLDHAM, 11C/AD
MA BROWNING, CRE4
FR WILKS
BOT B
MA TWYMAN
OPG
MR LOVE,
CRE
i
PSI LORD GORONWY ROBERTS
PS/PUS
SIR A DUFF
MR STRATTON
MISS BROWN
CONFI
MA CROFT, FED
MR KAPITT,
DEPISEC
MR. FARROW,
5BP
MR. THOLAITON,
EPT
æÞ
ECG.D
MA COTTERILL, ECGD
MR HENLEY,
CONFIDENTIAL
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DOT