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In order for us to proceed with the design of the coal handling and grinding cquipment, na vell aa the boilers and auxiliaries, it will be necessary in the near future to establish the courca ór sources of the coals we expect to uso and the allowable ranges of their critical specifications. we would 14ko to purchase a coal of rolatively high volatile content (20 to 30%),
If possible having low sulfur (1.0 to 1.2% maximum), less than 15% total ash and with a minimum calorific valua of around 12,000 Britich Thermal Valta per pound.
As mentioned by Sir Lawrence during our discussions, we recognize that tha long term supply of the large quantities of coal shown above will be a major undertaking, probably requiring development of nev mines which may be dedicated primarily to this use. As ha indicated, wo understand that British "long-wall" wining technique and equipment are considered to have technological advantages which would make them drmanently suitable fox usa in the type of coal deposits being mined to a largo extout in China. For this reason he suggested that there may be a possibility of arranging for the supply of the latest, most advanced British coal mining machinery, with paymont for the equipment to ba deferred and made in the form of coal deliveries when needed by the new pover plant. We shall be pleased to devalop thia possibility further with tha appropriate authorities and coal mining equipment companies, should it be of interest to your principals.
As you requested, ve ara attaching hereto copies of the exchanga of correspondance we have had with South-East Enterprises Co. (H.K.) Ltd. We greatly appreciatą the interest and cooperation wa have received from Mr. Mih in connection withį this matter. However, because of the very large volumes involved and the lonź tera natura of the purchase arrangement we have in mind, we believe, as indicated in our diacussion, progress will bɔ facilitated if our contacts on this subject can be carried on in the future directly with China Resources Company.
Again, many thanks on behalf of Sir Lawrence and myself for the opportunity of meeting with you this morning, We shall look forward to hearing from you et your earliest convenience concerning this important and urgent matter.
Yours faithfully,
PENINSULA ELECTRIC POWER COMPANY LIMITED
CUD:pl
C. II. Duncan.
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