RR PEKING
GR 230
11 JUL:977.
FED TREDE PUSD
14KTED J
#K.129
(136)
REC
CYPHER CAT 'A'
X-6
REGI
FM DTI 291558Z
RESTRICTED
TO ROUTINE PEKING TELNO CREDA 69 OF 8 JULY
INFO HONG KONG (PERSONAL FOR GOVERNOR), BTC HONG KONG.
LETTER OF 27 JUNE FROM MARCH (BTC HONG KONG) TO ROBERTS (CRE 4), COPIED TO DAVIES: HONG KONG POWER
STATION.
UNLESS YOU SEE OBJECTION (AND YOUR TELNO 24 OF
11 MAY TO HONG KONG SUGGESTS THAT YOU WOULD NOT) WE WOULD LIKE YOU TO SPEAK TO THE CHINESE, REFERRING TO THE RECENT DISCUSSIONS BETWEEN PEPCO AND CHINA
RESOURCES IN HONG KONG, TO REGISTER HMG'S INTEREST IN THE LONGER TERM IN A POSSIBLE DEAL FOR COAL AGAINST
MINING MACHINERY. WE SUGGEST THAT AT THIS STAGE YOU SPEAK
.IN GENERAL TERMS, WITH THE OBJECTIVE OF FINDING OUT
WHETHER THE CHINESE HAVE STARTED THINKING SERIOUSLY
ABOUT THE POSSIBILITY, AND OF ENSURING THAT THEY DO SO.
YOU SHOULD INDICATE AS APPROPRIATE THAT WE ARE NOT EXPECTING THEM TO REACH A DECISION NOW, AND CERTAINLY NOT UNTIL PLANS FOR THE NEW COAL BURNING POWER PLANT
IN HONG KONG, AND THUS FOR THE COAL REQUIREMENT, WERE DEFINITE.
كة
1+0
THE CORRESPONDENCE BETWEEN PEPCO AND CHINA RESOURCES
PROVIDES MATERIAL ON WHICH YOU CAN DRAW. YOU SHOULD
NOT HOWEVER SUGGEST (AS PEPCO APPEAR TO HAVE DONE IN THEIR LETTER OF 5 MAY TO YEH OF CHINA RESOURCES) EITHER
THAT BRITISH COAL MINING MACHINERY WOULD BE PROVIDED
ON CREDIT TERMS TO BE PAID FOR LATER DY IMPORTS OF
CHINESE COAL, OR THAT PEPCO WOULD NECESSARILY ACT AS
AGENTS FOR THE PROCUREMENT OF BRITISH COAL HOTING MACHINERY,
THESE ARE ISSUES WHICH WILL HAVE TO BE PURSUED
AT A LATER STAGE WHEN WE HAVE MADE FURTHER PROGRESS
WITH THE POWER STATION PROJECT ITSELF.
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