TNAG-0637-FCO40-785-Supplies-of-electricity-for-Hong-Kong-1977 — Page 4

Foreign and Commonwealth Office London SW1

Telephone 01-

in Daffy

LAST PAPER

Ө

192

Mr R Egan IC2

Department of Industry Room 610 V/S

1 Victoria Street London

Your reference

Our reference

HKK 164/1

Date

23 August 1977

Dear Mo Egan,

HONG KONG POWER STATION PROJECT

1. Thank you for sending me a copy of your minute of 18 August to Mr Roberts, CRE4, in which you suggest that Mr Lippitt should go to Peking to discuss the possible sale to China of British mining equipment against the supply of Chinese coal for the power station.

2. The reports from our Ambassador in Peking have indicated that Chinese consideration of these proposals will take several months and it is very unlikely the Chinese will be willing to take part in any further discussions as early as September. Furthermore, a visit by Mr Lippítt might give suspicious Chinese minds the idea that we have some ulterior motive for these proposals.

3. I imagine it is likely that Mr Lippitt will be visiting Hong Kong later in the year and I suggest that this might be a more suitable time for him to visit Peking.

4. I have discussed this minute with Sir Edward Youde and Mr Stewart of Hong Kong and General Department and the above represents our combined views.

Yours simaraly

cc: C W Roberts Esq.

CRE4, DOT

LK Forster Esq M2/DOT

Rm 630, Abell Hse.

Mr Stewart

HK&GD

I ain c. On

I C Orr

233 5539

Far Eastern Department K253

B

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