CONFIDENTIAL
45
RECORD OF A MEETING BETWEEN HE SIR C M MACLEHOSE, GOVERNOR OF HONG KONG AND HE MR LI QIANG, MINISTER OF FOREIGN TRADE, PEOPLES REPUBLIC OF CHINA, HELD AFTER DINNER AT THE RESIDENCE OF HE MRP CRADOCK, BRITISH AMBASSADOR, ON 29 MARCH 1979
HE_MR_P_CRADOCK_
Those present:
HE the Governor HE the Ambassador
HKK 006/3.
INDEX
No
2 3 APR1979
A' EMC Li-Qiảng
R
Mr Jia Shi, Vice Minister
of Foreign Trade
J28.9
Oil Supplies
The Governor explained that due to the situation in Iran, there had been a cut in deliveries of naptha and fuel oil of between 15% and 20%. This could have a serious effect on industry. The approach to China Resources in Hong Kong for additional supplies had not been successful. He would be very grateful if Minister Li Qiang could intervene on Hong Kong's behalf.
Li Qiang replied that they were receiving requests of this sort from all sources. The position in Thailand was particularly bad. The Japanese were also exercising pressure. He accepted that China had a special relationship with Hong Kong, but the fact of the matter was that China's production for export was fully contracted for the next two months.
The Governor said an assurance that supplies could be increased in the next two months would be very useful.
Li Qiang said that whatever China could do for Hong Kong would be done, and he would have the matter looked into. He passed on to Jia Shi a memorandum handed him by the Governor and said that the matter should be pursued through China Resources in Hong Kong mentioning that the Governor had spoken to him about it and that he had put Jia Shi in charge of the matter.
Quotas for China
The Governor said that Hong Kong's trade had been severely restricted by quotas imposed by the EEC and the USA. He understood that China was negotiating for quotas in the same markets. He said that if quotas were granted to China by reducing those for Hong Kong, it would be of no benefit to China since Hong Kong's prosperity would be affected and Hong Kong imports of China products would drop. This
/ was
CONFIDENTIAL