TNAG-0635-FCO40-783-Supplies-of-electricity-for-Hong-Kong-1977 — Page 142

CONFIDENTIAL

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W26

From the Private Secretary

Jess Joh Гол

10 DOWNING STREET

H⋅VD).

Sash Naway

31 March 1977

Minute Mr Alton

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Thank you for your letter of 30, March with which you enclosed/v

a brief for the Prime Minister's meeting today with Sir Lawrence Kadoorie.

Sir Lawrence called on the Prime Minister, as arranged, at 1745 this evening, accompanied by Mr. W.F. Stones, the Director and Deputy General Manager of China Light and Power Company.

Sir Lawrence handed the Prime Minister the enclosed copy of a meinorandum prepared for his discussion with your Minister of State on 30 March, and said that he understood that the Prime Minister The basis of his had already received a brief for this meeting. approach was a unique situation, whereby Hong Kong needed a power station for the years 1981/2, just at a time when this could help red unda nc ies in this country. According to the CPRS report, this could involve as many as 30,000 people.

Sir Lawrence added that China was most anxious to increase her exports of oil and coal, and that exports of coal at present only amounted to 1% of her production. If Hong Kong were to buy coal

from China, it should be possible to secure a position for the UK as the greatest single supplier of coal mining machinery for China. This would combine four factors, namely a link between Hong Kong and China; a purchase of Chinese coal; help towards the labour problem; and assistance for UK exports of machinery.

Mr. Stones produced a copy of a report produced by the Central Intelligence Agency on the coal industry, and said that this made it clear that the Americans were in a strong position to move in to the Chinese coal industry. Sir Lawrence said that he hoped that

that there were could move in first, and that he was confident enough elements in the sort of package which might be proposed to make this worthwhile.

The Prime Minister said that he much appreciated Sir Lawrence's concern and interest, and that the scheme he had outlined would

He certainly have his strong personal encouragement and blessing. understood that there were problems about price, to which Sir Lawren agreed, but emphasised that he was not trying to start a Dutch aucti The Prime Minister said that we were proposing to set up a joint Whitehall/industry group to examine urgently ways of coordinating a comprehensive bid, and that he would certainly continue to take a personal interest in the matter.

CONFIDENTIAL

/Sir Lawrence said