TNAG-0638-FCO40-786-Supplies-of-electricity-for-Hong-Kong-1977 — Page 143

HONG KONG PROJECT

CONFIDENTIAL

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2 1'Nov

DESK OFFICI

INDEX

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NOTE OF A MEETING HELD ON THURSDAY 10 NOVEMBER AT 10.30 AM IN ROOM 610, 1 VICTORIA STREET

A J Macdonald in the chair

Present:

W Quantril

I Orr -

karamd

FCO/Hong Kong

/China CRE/Hong Kong

/China

1

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1

J Ashwood

D Love

L Forster M

R Egan

Mat

IC2

"

P Moulson - IC2

Aud

Mr Macdonald briefly described the background to Sir Lawrence Kadoorie's suggestion of an arrangement which would tie the sale of UK goods - specifically mining machinery to China with the supply of Chinese coal for CLP/PEPCO's new power station. The purpose of the meeting was to sound out views on the advantages or otherwise of the principles of Sir Lawrence's suggestion given that UK mining machinery industry was independently pursuing the possibility of further exports to China.

2

In a detailed discussion the following points were made:

i

Mr Love reported that the recent Sino-British Trade Council mission, led by Lord Nelson, had produced no official Chinese response on mining machinery or the future availability of Chinese coal. Their future plans were clearly not yet settled; once they had been firmed up however it was likely that they would make sudden enquiries seeking the prompt submission of specific proposals. Mr Thorpe of Anderson Strathclyde, the mission's spokesman on mining machinery, had been left with the impression from Chinese coal authoritity officials that UK equipment was rated highly in China but that several other countries, notably Poland and West Germany, were also actively seeking export opportunities there. Mr Forster confirmed the Industry's concern about increasing competition from those areas. He was not aware of

any feedback from the Chinese delegation who had visited a recent mining machinery exhibition in Birmingham. It was agreed that the DoI should continue to pursue with the industry the possibility of exports to China. In this connection, the industry should be made aware, through appropriate channels, of the possibility of further sales. It was important also that we maintain contact with the Chinese so that they are in no doubt about our interest in supplying their requirements;