187
GR 270
IMMEDIATE
CYPHER CAT A
FM FCO 24183OZ
CONFIDENTIAL
CONFIDENTIAL
24
HERICH||
DESKBY 2501007
حله
TO IMMEDIATE HONG KONG TELNO BTC 52 OF 24 JULY INFO IMMEDIATE PEKING
See 13
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Telen
YOUR TELNO BTC 60 AND PEKING TELNO 453: HONG KONG COAL DEAL
1. WOULD YOU NOW SEND A LETTER TO KADOORIE AS FROM LIPPITT. WE UNDERSTAND THERE IS A HIGH LEVEL MEETING IN CLP ON TUESDAY 25 JULY TO DISCUSS THE CHINA PROPOSAL. IT WOULD BE VERY USEFUL TO THEM TO RECEIVE LIPPITT'S LETTER BEFORE THEN. THE TEXT SHOULD BE EXACTLY AS IN FCO TELNO 391.
2. THE DRAFT MEMORANDUM SHOULD BE AMENDED AS FOLLOWS:
PARA 1: FIRST SENTENCE: DELETE QUOTE PREVIOUS UNQUOTE
PARA 4: DELETE EVERYTHING AFTER QUOTE IN WHICH CASE UNQUOTE AND SUBSTITUTE QUOTE OTHER FINANCING ARRANGEMENTS COULD BE MADE UNQUOTE. ALSO OMIT THE ALTERNATIVE PARA 4.
PARA 51 OMIT ALTOGETHER.
3. THE DETAILED AMENDMENTS SUGGESTED BY YOU AND PEKING TO KADOORIE'S LETTER TO SUN HAVE BEEN PASSED TO DEWE MATHEWS, TO BE RELAYED TO KADOORIE.
4. DEWE MATHEWS WAS CONCERNED THAT A TRUST FUND SET UP AS
DESCRIBED IN YOUR PARA 1 WOULD NOT BE ACCEPTABLE TO THE CHINESE
AS IT GIVES CONTROL OVER THEIR MONEY TO OTHER PEOPLE, MOREOVER AS IT COULD NOT BE COMBINED WITH AN UNCONDITIONAL OBLIGATION ON THE
CONFIDENTIAL
/CHINESE