CONFIDENTIAL
GRS 1400
CONFIDENTIAL
FROM PEKING 071039Z DEC 84
TO PRIORITY FCO
TELNO 2921 OF 7/12/94
INFO PRIORITY HONG KONG
MY TELNO 2727 OF 9 NOVEMBER: FUTURE OF HONG KONG:
HKK 040/57
RECEIVID I REGISTRY
10 DEC 1984
DER 12-FICER INDEX
PRIME MINISTER'S VISIT TO PEKING: SUBJECTS FOR DISCUSSION
PA
Y
JAKI TOP COPY
1. THIS TELEGRAM MODIFIES SOME OF THE ADVICE IN TUR IN THE LIGHT
OF DEVELOPMENTS. OTHERWISE MY RECOMMENDATIONS STAND.
ECONOMIC AND COMMERCIAL RELATIONS
250
2. THE PRIME MINISTER WILL NEED TO TAKE ACCOUNT OF WHAT LI: PENG
SAID TO MR BUCHANAN-SMITH ON 4 DECEMBER (MY TELNO 2836). SHE WILL ALSO, OF COURSE, WISH FORMALLY TO PROPOSE THE VISIT OF THE
HIGH LEVEL TRADE MISSION.
3. IF THE PRIME MINISTER HAS TIME TO MAKE SOMETHING OF A
PRESENTATION ON TRADE, MY RECOMMENDATION IS THAT SHE SHOULD BEGIN
BY EMPHASISING THE PARTICULAR AREAS OF EXPERTISE WHERE BRITAIN
CAN BEST ASSIST IN CHINA'S DEVELOPMENT. THE OBVIOUS STARTING POINT
IS (NEXT WORD UNDERLINED) ENERGY. UNDER THIS HEADING, SHE COULD
COVER OFFSHORE OIL (REFERRING BACK TO MR WALKER'S AND MR BUCHANAN-
SMITH'S VISITS, THE OSO/SBTC OIL SEMINAR AND THE EXISTING ACTIVITY
BY UK FIRMS IN THIS FIELD). SHE COULD THEN GO ON TO COAL, REFERRING
BOTH TO KAILUAN AND JINING NO.2 AND THE SUCCESSES OF UK
EQUIPMENT SUPPLIERS IN THE PAST (ON KAILUAN THE DIFFICULTY WILL
BE TO HANDLE THE CHINESE WISH, CLEARLY EXPRESSED TO MR BUCHANAN-
SMITH, THAT HMG SHOULD PROVIDE ''PREFERENTIAL FINANCIAL CONDITIONS'')
·
SHE MIGHT ALSO REFER TO BRITISH GAS'S HOPES TO COOPERATE WITH THE
CHINESE AND THE EXPERTISE OF BRITISH CONTRACTORS (E.G. BABCOCKS,
HUMPHREYS AND GLASGOW AND DAVY) IN COAL GASIFICATION.
4. THIS COULD LEAD ON TO POWER GENERATION GENERALLY. THE P.M. MUST CLEARLY SAY SOMETHING ABOUT THE GUANGDONG NUCLEAR PROJECT. WHAT
EXACTLY CHE SHOULD BE ADVISED TO SAY WILL DEPEND ON PROGRESS IN
THE NEXT TWN DAYS. NEVERTHELESS, THE MOST IMPORTANT POINT WILL PROBABLY BE TO EMPHASISE THE IMMINENCE OF THE 15 JANUARY DEADLINE FOR THE CHANGE IN THE CONSENSUS RATE. I HOPE, HOWEVER, THAT SHE COULD ALSO EMPHASISE THE EXPERTISE OF BRITISH FIRMS IN POWER GENERATION AND TRANSMISSION, WHERE, AS DTI. ARE AWARE, THE CHINESE
HAVE EXTREMELY AMBITIOUS PLANS.
5. THE PRIME MINISTER COULD THEN REFER TO NEXT WORD UNDERLINED) COMMUNICATIONS, WHICH IN CHINESE TERMINOLOGY COVERS BOTH (NEXT WORD UNDERLINED) TRANSPORT AND (NEXT WORD UNDERLINED) TELECOMMUNI CATIONS. BRITISH FIRMS ARE CURRENTLY VERY ACTIVE ACROSS THE BOARD
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