20
Mr Williamson
Mr Morrice
Mr Clifts.
5.8
SECRET
Reference
Akk 162/2
RECEIVED IN REGISTRY NO. 51 27 AUG 1980
HONG KONG: OIL
DESK OFFICER
INDEX
PA
删
A
1.
Attached
madan
Attachys
E
Ho $18.9
REGISTRY Action Taken
AN16/
ه میل
26
Mw27.8
Seevi
JOTED
d
27/8
Mr Clift's minute at HKK 162/2 TUTTO 7 asks at paragraph 8
that our information on Hong Kong's plans on oil be put together, with a possible view to discussion with the Governor and
Mr Dorward. This information falls into two main categories:
(i) the Secret ExCo Memorandum on prospecting for oil in
Hong Kong;
(ii) the Advisory Committee for Diversification Report's
recommendations.
ExCo Memorandum
2. At its 11 March meeting, ExCo approved the proposal that the Hong Kong Government should continue its policy of not approving applications for oil prospecting within the territorial limits of Hong Kong; A change of policy would have practical impli- cations vis-à-vis availability of land for development of a comprehensive oil industry, and political implications vis-à-vis boundary questions, should fields straddling Hong Kong and Chinese territory be discovered. ExCo agreed "that any publicity should emphasise that explorations for oil were being conducted all along the coast of China and that until the picture became clearer it would be premature for Hong Kong to commit itself to permitting exploration in Hong Kong or its waters, particularly in view of the existing pressures on space, etc.".
3. Mr Clift noted on the ExCo Memorandum that the political question of boundaries might still arise over a find in Chinese territory or waters next to Hong Kong. It may be appropriate to seek an initial view on this from the Governor.
ACD Report
4. The relevant sections are paragraphs 266, 271 and 272. Report recommends in paragraph 272 that:
The
(i) the Government should plan actively for the provision of
a site for a logistics support base;
(ii) the feasibility of establishing an oil refinery in Hong
Kong should be re-considered.
5. We know that there have been discussions with BP over the
possible construction of an oil refinery. Our most recent paper on this is a cutting from the "Financial Times" of 23 June announcing these discussions. We have seen nothing further since.
6. Mr Pasteur's study presumably follows at least partly from the ACD recommendations. It may be useful to seek views from the Governor or Mr Dorward on how far they see Hong Kong developing facilities and expertise in this area, and in particular to what
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SS 8/78
SECRET
/extent