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BRITISH TRADE COMMISSION

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PEP's contribution to all the projects which he had been associated. Stones acknowledged this but clearly does not believe that, without the direct commitment of British industry, he and PEP together could achieve what he has in mind. He is not prepared himself to take on the

'conceptualising" function;

he needs to work with a team.

7. I commented that, as I saw it, his principal value to HMG and to British industry was the relationships which he had built up over many years with China. If he were visiting China from time to time, it would be his reputation which would help to bring business to the UK. He warmly agreed that he was always willing to do what he could in this respect. He mentioned that, before his final departure from Hong Kong at the end of this year, he and his wife had been invited by Di Feng and his wife Zhu Lin to pay a formal farewell visit to Peking. But he would always ready to come out again on behalf of British industry as and when this was thought helpful.

8. As you will see, I fear that in my first discussion with him, I was not able to make much impact. He has undertaken that he will be writing to Mr Needham soon. I think we must now await that letter. It would be helpful if you could give us a sight of it when it finally emerges. I should add that stones spoke extraordinarily warmly about Mr Needham. He would like very much to help him. He sees Mr Needham's enthusiasm as an enormous plus for UK industry.

9. I am copying this teleletter to Allan Kerfoot in Peking and to FED and HKD in the FCO. You will no doubt copy to other interested parties.

Your ever

Hugh

H L1 Davies

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