40162

SPY

î 8 OCT 1980

3.5

BORIS

CONFIDEN

GRS 225

CONFIDENTIAL

FM HONG KONG 2805107 OCTOBER 80

TO PRIORITY SINGAPORE

TELEGRAM NUMBER 28 OF 28 OCTOBER

سیلا

shini An

INFO ROUTINE HONG KONG GOVERNMENT OFFICE LONDON

1. OVER THE PAST FEW MONTHS HONG KONG HAS BEEN FORMULATING A

PLAN TO INCREASE ITS STRATEGIC OIL STOCKS BY STORING 200 000 METRIC TONS OF FUEL OIL IN TWO TANKERS MOORED IN HONG KONG WATERS. RESPONSIBLE FOR IMPLEMENTATION IS OWENSBORD ENTERPRISES LTD, A COMPANY COMPRISING H K GOVERNMENT THE TWO POWER COMPANIES AND THE TWO MAIN OIL COMPANIES WITH HKG HAVING THE

CONTROLLING INTEREST.

2. ARRANGEMENTS FOR PURCHASE OF FUEL OIL FROM THE ARAB GULF ARE ALMOST COMPLETE. IT WOULD BE MUCH MORE ECONOMICAL IF THE OIL COULD BE BROUGHT IN ONE LARGE TANKER TO SINGAPORE AND THERE TRANSHIPPED TO TWO SMALLER TANKERS FOR THE VOYAGE TO HONG KONG. WE WOULD NEED AN AREA OF THE HARBOUR FOR 3-4 DAYS PROBABLY ABOUT 17TH NOVEMBER. WE COULD MEET ANY TECHNICAL REQUIREMENTS E.G. BOOM TO CONTAIN OPERATION. WE UNDERSTAND THAT SINGAPORE ALLOWS SUCH OPERATIONS ONLY FOR OIL FOR ITS OWN REFINERIES.

3. MOST GRATEFUL IF YOU COULD ASK SINGAPORE GOVERNMENT IF OWENSBORD COULD BE SO PERMITTED SINCE THIS IS A ONE-OFF, THERE IS

HKG INVOLVEMENT AND THIS IS A NON-PROFIT OPERATION.

4. A REPLY WITHIN THE NEXT FEW DAYS IS IMPERATIVE SINCE IT AFFECTS

DECISIONS ON IMMINENT LOADING OF OIL IN THE GULF.

242

see

45

MACLEHOSE

MINIMAL

HRED (4)

ESS D

COPIES

HONG KONG GOVT OFFICE

LONDON

CONFIDENTAL

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