J Mortimer Esq
H M Treasury
Parliament Street London SW1
Direct line
Our ref
071 215 5462
Your ref
Date 23 September 1991
Dear Joinie
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the department for Enterprise
HKD $26,
026/13
Cc.. Mr. Dames PED
Mr. Ricketts HKD
Ат 2419
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PRIME MINISTER'S VISIT TO CHINA AND HONG KONG
157
Department of Trade and Industry
Ashdown House 123 Victoria Street London SW1E 6RB
Enquiries
071-215 5000
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Mr box
Thank you for your letter of 10 September. I have looked again at the briefing in question.
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Mr Store 26/9
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2. You say that the Prime Minister was invited to confirm "that ECGD cover would be made available for the Black Point power station". That is not so. The relevant Annex is entirely clear and balanced about the position in relation to ECGD cover; indeed it specifically mentions current exposure and the fact that Treasury authority would be required for projects such as Black Point. I do not think the Prime Minister would have been left in any doubt that there were issues here that would need to be addressed in due course. would of course have contacted the Treasury had we proposed to say anything new; but both ECGD and we were clear, in relation to the parts for which we were responsible, that we were in no way departing from the position agreed in Whitehall. That remains my judgement; and my understanding was and is that it is Malcolm Stephens' judgement too.
3.
You will not expect me to comment in detail on the substance of the issue in relation to these projects. That will be a matter for discussion between Departments in due course; indeed my Secretary of State has indicated that this is a matter which he will wish to discuss with colleagues at the right time. Both Black Point and PADS are very major projects and offer vital opportunities for British companies to maintain or establish themselves in a key market in the
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