GR 395
in Audi 8223 or
NO
in The
YPHER CAT A
FM BTC HONG KONG 220310Z
CONFIDENTIAL
DISTRIBUTION (23
•DUPS: TRED (2 PUSD (2
No 20/4 2.5 HKD teas.
TO PRIORITY D T I TELNO CREDA 280 OF 22 NOVEMBER 1977
INFO ROUTINE PEKING.
YOUR CREDA 355: COAL FOR CLP FROM CHINA.
FED
Kizq
SIR LAWRENCE, WHO HAS OBVIOUSLY CONSULTED STONES, ENVISAGES THAT THE NEW GENERATING COMPANY WILL WISH TO PURCHASE A SUBSTANTIAL
PART OF THEIR COAL REQUIREMENTS FROM CHINA AND THAT THEY SHOULD
THEREFORE COOPERATE WITH HMG TO SUGGEST A BARTER ARRANGEMENT
WHEREBY PAYMENT SHOULD BE IN THE FORM OF UK COAL MINING EQUIPMENT
OR OTHER UK GOODS.
2. COAL SUPPLIES MUST OF COURSE BE CONTROLLED BY THE GENERATING
COMPANY AND SIR LAWRENCE SUGGEST THAT IT SHOULD SET UP A
SPECIAL FUEL PURCHASING SECTION TO HANDLE NEGOTIATIONS WITH CHINA
WHICH COULD CALL UPON THE NCB FOR EXPERT ADVICE BOTH ON THE TYPE
OF COAL REQUIRED AND TECHNICAL ASPECTS OF THE UK MINING
EQUIPMENT TO BE SUPPLIED IF THE CHINESE AGREE TO A BARTER. IF THE
CHINESE WERE TO INSIST THAT HMG SET UP SUCH A DEAL, THE GENERATING COMPANY WOULD REQUIRE TO PARTICIPATE DIRECTLY IN THE
NECOTIATIONS TOGETHER WITH THE UK SUPPLIERS. WHEN I EXPLAINED THAT HMG WOULD NOT WISH TO FINANCE UK MINING MACHINERY EXPORTS IN
ADVANCE OF THE SUPPLY OF THE COAL, SIR LAWRENCE SAID THAT HE
ENVISAGED NOTHING BEYOND OUR EXISTING TERMS FOR GRANTING DEFERRED
PAYMENT TO CHINA.
3. STONES CURRENTLY ESTIMATES THAT CLP WILL REQUIRE HALF-MILLION
TONS OF COAL IN 1981, A FURTHER ONE MILLION TONS IN 1982 RISING
TO TWO MILLION TONS IN 1983 AND 3 MILLION TONS IN 1984. ANNUAL
REQUIREMENTS BY MID-1980'S WILL BE THREE AND ONE HALF MILLION
TONS. WORKING ON THE BASIS COAL COSTING ABOUT HONG KONG DOLLARS TWO HUNDRED PER TON, THESE FIGURES SUGGEST THAT IN A BARTER DEAL
CHINA WOULD HAVE ABOUT POUNDS STERLING TWELVE AND ONE HALF
MILLION TO SPEND ON UK COAL MACHINERY IN 1981 INCREASING AT THE
RATE OF POUNDS STERLING TWENTY FIVE MILLION PER ANNUM.
MARCH
No comments yet.
Private notes are available after approval.