CONFIDENTIAL
WHICH WILL ENABLE CHINA TO PAY FOR THE TRANSMISSION FACILIT
COVER
A PERIOD OF FIVE YEARS FROM THE COMMISSIONING OF THE FACILITIES
(APPENDIX D).'
6. THIS PROPOSAL COULD BE IMPLEMENTED EITHER THROUGH CHINA RESOURCES CR THE ESTABLISHMENT OF A NEW TRADING COMPANY' IN HONG KONG TO ACT AS INTERMEDIARY BETWEEN CHINA, HONG KONG AND THE UNITED KINGDOM,
7. IF A NEW COMPANY IS CONSIDERED NECESSARY WE WOULD SUGGEST ATM JOINT VENTURE BETWEEN THE CHINESE AUTHORITIES, THE KADCORIE INTERESTS AND ANY OTHER ORGANISATION THAT COULD CONTRIBUTE TOWARD THE 'SUCCESS OF THE JOINT VENTURE, FOR EXAMPLE, INTERCONTINENTAL FUELS LIMITED (THE OVERSEAS TRADING ASSOCIATE OF THE BRITISH NATIONAL COAL BOARD),
COULD MARKET CHINESE COAL INTERNATIONALLY.
8. IN VIEW OF THE POSSIBILITY OF CHINA WISHING TO PROCEED IMMEDIATELY
WITH EITHER RURAL DEVELOPMENT OR RECEIVING A BULK SUPPLY OF
ELECTRICITY IT IS SUGGESTED THAT LIMITED PURCHASES OF COAL PRIOR TO 1982 COULD POSSIBLY BE ARRANGED THROUGH INTER-CONTINENTAL FUELS.
9. IN CONCLUSION MAY I SAY HOW MUCH BOTH MR STONES AND I ENJOYED
THE OPPORTUNITY OF TALKING WITH YOU DURING OUR RECENT VISIT TC
YOUR GREAT CITY.
OWEN
FILES
FED
ES & SD
COPIES TO
MR ROYCE
MR KNIGHTON
DEP SEC
ECON D
TRED
NEWS D
MR OLDHAM
IIC/AD
MR WILKS
BOTB
DOT
MR BROWNING
CRE4
HK & GD
MR TWYMAN
OPG
PS/MR JUDD
MR LOVE
CRE
PS/LORD GORONWY-ROBERTS
MR CROFT
FEA
PS/PUS
MR LIPPITT
DEP SEC
SIR A DUFF
MR FARROW
SBP
DOI
MR CORTAZZI
MR THORNTON
EPT
MR MURRAY
MR COTTERILL
ECGO
MR THOMAS
MR BUTLER MR LEAHY
-8- CONFIDENTIAL
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