GR 700

CONFIDENTIAL

CONFIDENTIAL

FM BTC HONG KONG 210945Z NOV 84

TO IMMEDIATE FCO

TELEGRAM NUMBER BTC 147 OF 21 NOVEMBER

INFO IMMEDIATE DTI (FOR BENJAMIN)

INFO ROUTINE PEKING

HKK 040/57

RECEIVED IN REGISTRY

2 2 NOV 1334

DESK OFFICER

INDEX

109

FOR GALSWORTHY, HONG KONG DEPARTMENT

PA

при

rober

YOUR TELNO 1430 AND OUR TELNO 135: PRIME MINISTER'S VISIT.

1. LORD KADOORIE ASKED TO SEE ME TODAY TO DISCUSS THE GUANGDONG

NUCLEAR PROJECT IN THE CONTEXT OF THE PRIME MINISTER'S VISIT. HE

WAS CONCERNED THAT MRS THATCHER SHOULD BE CORRECTLY BRIEFED FROM

CLP'S POINT OF VIEW AND THAT HE SHOULD HAVE A CHANCE TO TALK TO

HER DURING HER HONG KONG VISIT.

2+-ASSURED LORD KADOORIE THAT THE PRIME MINISTER WOULD BE MOST

CAREFULLY BRIEFED BY YOURSELVES AND THE DTI BUT ASKED WHETHER THERE

WAS ANY ADDITIONAL POINT HE WOULD WISH US TO MAKE. HE SAID THAT

THE PRIME MINISTER SHOULD BE AWARE OF HOW SERIOUS THE RIFT WITH

EXXON HAD BEEN AND THAT IT WOULD TAKE A LONG TIME FOR THE WOUNDS

TO HEAL. A PARTICULARLY UNFORTUNATE EFFECT OF THE DISPUTE WAS

THAT THE CHINESE NOW BELIEVED THAT EXXON RAN CLP. I SUGGESTED THAT

WE MIGHT RECOMMEND TO LONDON THAT THE PRIME MINISTER SHOULD STRESS

CLP'S ENTHUSIASM AND COMMITMENT FOR THE PROJECT, AS WELL AS HMG'S,

EMPHASISE THAT THE EXXON DISPUTE WAS NOW OVER AND THAT HENCEFORTH

IT WAS CLP NOT EXXON WHO WERE PARTICIPANTS IN THE PROJECT AND WOULD

BE CALLING THE TUNE. KADOORIE AGREED THAT THIS WOULD BE HELPFUL.

3. LORD KADOORIE SAID HE WAS VERY KEEN THAT THE PRIME MINISTER

SHOULD HAVE LUNCH AT CASTLE PEAK DURING HER VISIT TO HONG KONG.

I EXPLAINED THAT MRS THATCHER'S VISIT WOULD BE EXTREMELY BRIEF AND

THAT THE HONG KONG GOVERNMENT DID NOT WISH ANY BRITISH COMMERCIAL INGREDIENT. KADOORIE STIFFENED AT THIS AND SAID THAT HE WOULD BE

DEEPLY OFFENDED IF, GIVEN CLP'S EXTENSIVE PURCHASES OF BRITISH

EQUIPMENT FOR CASTLE PEAK AND NOW ANTICIPATED FOR GUANGDONG

(ABOUT POINDS 1,500 MILLION), HIS CONTACT WITH HER IN HONG KONG WAS CONFINED TO A BRIEF WORD AT SOME SOCIAL OCCASION. CLP AND HE PERSONALLY HAD GONE THROUGH MUCH IN PURSUIT OF POLITICAL AS WELL

AS ECONOMIC OBJECTIVES WHICH THEY BELIEVED TO BE IN THE INTERESTS OF BRITAIN, HONG KONG AND CHINA. THEY HAD INCURRED THE BITTER

HOSTILITY OF THEIR PARTNER EXXON. HE CONSIDERED THAT THESE

SACRIFICES WERE NOT BEING APPRECIATED. TO BE COLD SHOULDERED DURING

THE PRIME MINISTER'S VISIT WOULD BE THE LAST STRAW.

CONFIDENTIAL

14.

J

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