TNAG-0638-FCO40-786-Supplies-of-electricity-for-Hong-Kong-1977 — Page 27

which grote wore or pentisclav i

moment be able to define upecific an

group would be coming to A. UK next year.

ould not sl the

noted that u oil exploration study

mda redrted out that the bulk of Chinese

oil exploitation experience was incline but they ere beginning to exploit off-shore oil in shallow water and sro considveinn exploitation of deen BER rescrves,

3 Secretary of State asked if the OP Lange had cau cole bed their possible exports the next 4 years.

Mene colla has a major effect on oil trade. ́It would helt everybody if data could be exchanged on coul, oil, gas and uranium apply and deanad. Would further discussione be useful? är i said this was a big question; the

Chinese are not clear of their total reserveg. Oil produced in Chine would in any

case mainly be consumed in China : le cxnected that in future when oil ran out other

energy resSONYVER MOuld be found. Secretary of State referred to the Department's estimate the oil prices could double or treble in real terms by the year 2000 AD,

which would impose heavy burdens on oil importing countries. All countries would have

an interest in better knowledge of future expectations. Mr Sung intervened to say that

China is preparing to develop 10 oilfields each as big as Taching, but it is difficult

to assess export prospects. My Li once more referred to China's rich coal resentOS

which could be exploited for 1000 years at present rates of consumption. They had many varietice of coal, but the major problem was that of transporting it to where it

could be used. He listed several options:-

i)

placing power stations near tool mines,

ii)

placing chemical fertiliser plants near mines,

iii

iv)

placing other forms of chemical plant near the mines,

coal enɛification near the mines.

Secretary of State

This will require the introduction of modern Western technology. noted that these were areas in which the UK was very interested. They need deep study end the UK would be happy to put itc experience at Chinese disposal.

Secretary of State vent on to ask if the Chinese had started co-operating with

commercial companies or with countries. Mr Li replied that they had had several offere by companies who would assist in exploration for oil in the China Sea and if cunccessful would assist in producing it, taking some of the oil in payment but receiving no paymont if exploration efforts were unsuccessful. There proposale have not been accepted. Secretary of State referred to the 's determination not to be exploited as the Auch rations had been by the international oil companies. The State Oil Company has been

set up which in a few years would have an adequate technological basis to allow for

co-operation with the Chinese thus allowing them to avoid direct co-operation with the

unamennial perpanies. He li reiterated that the Cainese were trying to meeding ne rste of exploitation of cil by introducing foreign technology. They were ales mer og to Ampert cow-mining equipment feon the UK no had happened in the past on a subium Hot In particular he tentioned plans to buy mining equipment which would be nodd for

scale.

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