CONFIDENTIAL
PLANT: WATER TUDE BOILERS AND HEAT RECOVERY SYSTEMS: OIL, COAL AND GAS FIRING SYSTEMS: STEAM TURBINE GENERATORS AND ASSOCIATED SAM CONDENSERS, FEED-HEATING AND ANCILLARY PLANT, TURBO-TYPE AND OTHER GENERATORS: ALTERNATIVE PRIME MOVERS (EG HEAVY DUTY AND AERO-DERIVED GAS TURBINES UP TO 100% AND DIESEL ENGINES):
AND CONTROL EQUIPMENT.
3. TO FACILITATE PURCHASES IN THESE CATEGORIES, HMG WILL BE PREPARED TO MAKE AVAILABLE APPROPRIATE EXPERTS FROM UK NATIONALISED INDUSTRIES IN PARTICULAR, THE NATIONAL COAL BOARD AND CENTRAL ELECTRICITY GENERATING BOARD, TO CO-OPERATE WITH THE CHINESE AUTHORITIES IN INITIAL ASSESSMENTS OF SPECIFIC PROJECTS. IN ADDITION, SIR DEREK EZRA, THE CHAIRMAN OF THE NATIONAL COAL BOARD WILL BE ACCOMPANYING MR DELL TO PEKING IN AUGUST AND WILL BE AVAILABLE TO DISCUSS CHINESE REQUIRE- VENTS FOR COAL MINING AND ANCILLARY EQUIPMENT: AND HMG HAS OFFERED TO SEND A POWER PLANT MISSION COMPRISING SENICR INDUSTRIALISTS TO CHINA WHICH WOULD INITIATE DISCUSSIONS ABOUT CHINESE REQUIREMENTS IN THAT AREA. THE NATIONALISED INDUSTRIES ARE ALSO ABLE TO PARTICIPATE WITH U K MANUFACTURERS IN PREPARING PROPOSALS AND UNDERTAKING ORDERS.
4. HMG WOULD FURTHER BE PREPARED TO DISCUSS THE POSSIBILITIES FOR SUCH ORDERS BEING PAID FOR FROM A TRUST ACCOUNT INTO WHICH REVENUES FROM CHINESE SALES OF COAL MIGHT BE PAID. ALTERNATIVELY CHINA MAY WISH TO PLACE ORDERS IN ADVANCE CF ARRANGEMENTS FOR CCAL SUPPLIES BEING NEGOTIATED, IN WHICH CASE CONTRACTS COULD BE ENTERED INTO ON THE BASIS OF STANDARD PAYMENT ARRANGEMENTS WITH THE INITIAL OBLIGATIONS BEING MET FROM CHINA'S OWN FOREIGN EXCHANGE RESERVES, CR BRIDGING FINANCE ARRANGED WITH COMMERCIAL BANKS, AND THE LATER OBLIGATIONS FROM REVENUES DERIVED FROM
COAL SALES.
5. IN EARLIER DISCUSSIONS IT WAS SUGGESTED THAT THE CHINESE REVENUES FROM COAL SALES WOULD BE USED TO PURCHASE COAL MINING MACHINERY AND THE PROPOSALS ABOVE EMBRACE THIS AS WELL AS OTHER
POSSIBILITIES.
6. SIR LAWRENCE KADOORIE IS PUTTING FORWARD A SPECIFIC PROPOSAL TO MR SUN SUO-CHANG, DIRECTOR OF THE THIRD BUREAU, MINISTRY
-5- CONFIDENTIAL
/OF