TNAG-0636-FCO40-784-Supplies-of-electricity-for-Hong-Kong-1977 — Page 63

CONFIDENTIAL

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DF Murray Esq CMG

AUSS

Foreign and Commonwealth Office

LONDON SW1

(93) 117

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26/197

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Dear Derald,

REGISTRY No. 51

14 JUN1977

BRITISH EMBASSY,

HKK 16 PEKING.

2/June 1977

Mr Stepoort HKG D

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of the package

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mining equipment.

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export market for

12/6

1. I am sure that you will have seen the telegrams about the new power station in Hong Kong. The action is primarily with the Department of Industry but I presume that the Foreign Office are represented on or have some connection with the joint group which is talking to the companies in the UK.

2. This is going to be a big subject and it would be helpful to me to know who in the Foreign Office will hold the watching brief. The ball is very much as I understand it now in the London court and I have nothing to add from here at the moment.

The I would however be grateful for elucidation of one point. terms on which a power station might be provided to Hong Kong is very much a matter between Hong Kong and London. Whether the Chinese will agree to supply coal on a longterm basis will no doubt become clear through the approaches which China Light and Power have made to China Resources in Hong Kong. I am not however quite clear how it is proposed to pursue the third element which is the export of British mining or other machinery (para. 3 of my tel. no. 24 to Hong Kong). Sir Peter Carey's telegram to Hong Kong no. 366 said that you were pursuing in London all the possibilities mentioned by Hong Kong which included a triangular package (para. (d) of Hong Kong tel. no. 33 419) and so I imagine that it is being covered by the London

discussions. It is of course of prime interest to us here commercially and I hope we can be kept closely informed on your thinking on it.

Yam

Tubidy

EDWARD YOUDE

CONFIDENTIAL