XN000022-1983-11-10 — Page 26

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THURSDAY, NOVEMBER 10, 1983

Qt IS THERE ANY INDICATION FROM THE CHINESE OFFICIALS YOU SPOKE WITH THAT CHINA MAY EVENTUALLY EXPORT SOME OF THE OIL FROM THE SOUTH CHINA SEA FIELDS?

A: NO, I NEVER DISCUSSED IN ANY DETAIL WHAT THEY WOULD DO WITH THE OIL WHEN THEY OBTAIN IT, OF COURSE, IT DOES DEPEND HOW MUCH THEY OBTAIN AND HOW SOON THEY OBTAIN AND OVER WHAT PERIOD AND WHERE THEY OBTAIN IT. I DID DETECT A CONSIDERABLE INTEREST IN THE POTENTIALITY OF PETRO-CHEMICAL INDUSTRY DEVELOPMENTS THAT WOULD RESULT IF THEY HAD SUBSTANTIAL OIL RESOURCES AND SO I WOULD GUESS THAT IS ONE AREA THAT THEY'RE LOOKING AT BUT I DIDN'T DISCUSS IN ANY DETAIL. I MEAN AT THIS STAGE I WAS PRIMARILY CONCERNED IN DISCUSSIONS WITH FIRSTLY THE EXPLORATION AND THEN THE DEVELOPMENT, BUT THERE WILL BE CONSIDERATIONS TO BE TAKEN IN CHINA AND IT WILL DEPEND UPON THE BALANCE AND AVAILABILITY OF OTHER RESOURCES. IT WILL DEPEND HOW MUCH NATURAL GAS THEY GET, IT DEPEND WHAT THEY'RE DOING ABOUT THEIR COAL RESERVES AT THAT PARTICULAR MOMENT OF TIME. BUT I DIDN'T DISCUSS IN ANY SORT OF DETAIL AS TO WHAT THEY WERE GOING TO DO.

QI COULD YOU BE MORE SPECIFIC IN THE WAY THAT YOU'VE BEEN ENCOURAGING THE RELATIONSHIP BETWEEN BRITISH COMPANIES AND SUPPORTING INDUSTRIES HERE IN HONG KONG WHILE YOU'VE BEEN HERE IN HONG KONG?

WELL, I'VE MET QUITE A FEW OF THE BUSINESS LEADERS AND I'VE MET A GROUP OF COMPANIES INVOLVED IN HONG KONG THAT HAVE AN INTEREST IN THE OFFSHORE BUSINESS AND I HAVE SPOKEN TO THE OFFICIALS OF THE HONG KONG GOVERNMENT AND EXPRESSED A DESIRE WITH THEM FOR A CLOSER LIAISON SO THAT CAN PROVIDE HONG KONG WITH THE KNOWLEDGE AND

INFORMATION THAT WE HAVE BOTH FROM OUR NORTH SEA EXPERIENCE AND FROM OUR CONTINUING NEGOTIATIONS WITH CHINA, SO TO THE BUSINESS COMMUNITY AND TO THE GOVERNMENT I'VE EXPRESSED A VERY STRONG DESIRE TO SEE THAT WE WORK CLOSELY TOGETHER AND THAT BRITISH FIRMS BENEFIT FROM THE CONSIDERABLE CONTRIBUTION THAT HONG KONG COMMERCIALLY CAN OFFER. SO I THINK ONE OF THE RESULTS OF MY VISIT HAS BEEN TO IDENTIFY WAYS IN WHICH WE CAN HAVE A MORE EFFECTIVE WORKING RELATIONSHIP AS NOW ONE ENTERS THE EXCITING PHASE OF ALL THESE DEVELOPMENTS. AT THIS MOMENT OF TIME, YOU KNOW, DRILLING IS TAKING PLACE, DRILLING HAS STARTED BY B.P. FOR EXAMPLE, I DID TRY AND ARRANGE FOR THEM TO STRIKE VAST QUANTITIES OF OIL THE DAY I WAS IN CANTON BUT THEY FAILED ME MISERABLY AND DIDN'T DO ANY! BUT, I MEAN, IN THE COMING MONTHS THERE ARE GOING TO BE SOME VERY MAJOR DISCOVERIES THERE AND FROM THEN ONWARDS A LOT OF BIG AND MAJOR DECISIONS WILL BE TAKEN AND I WANT A VERY GOOD RELATIONSHIP BETWEEN BRITAIN AND HONG KONG TO BE OPERATING AT THAT TIME TO THE BENEFIT OF BOTH.

Q: I MEAN BECAUSE YOU'RE WANTING BRITISH COMPANIES TO BENEFIT, AND IN THE CASE OF DAYA BAY GEC IS GOING TO BENEF IT, I JUST DON'T SEE THAT THERE HASN'T BEEN ANY PRESSURE FROM THE BRITISH GOVERNMENT ON THE HONG KONG GOVERNMENT FOR THE CONTRACT, WELL FOR THEM FIRSTLY TO TAKE ELECTRICITY FROM DAYA BAY BECAUSE OBVIOUSLY IT'S GOING TO DIRECTLY AFFECT A MAJOR BRITISH COMPANY.

/A: I THINK,

E