TNAG-0759-FCO40-963-Manufacture-and-storage-of-explosives-in-Hong-Kong-1978 — Page 108

Reference

Flag A foto 3. AKK084111971

Flag B Jeles 3. HKK Ø844, 1976

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Mr Stewart Stex

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INDEX

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EXPLOSIVES FACTORY ON STONECUTTERS ISLAND

1.

On 19 December 1977 Mr March (SBTC) wrote to Mr Stewart, in reply to a telephone call from the latter, about the proposed factory.

2. The letter makes a number of points:

(a) only Dupont and ICI will be asked for tenders for the new factory;

(b) local factors preclude an early decision on the factory and there is no point ICI trying to rush things;

(c) ICI are particularly keen to win the contract so as to prevent Dupont gaining a manufacturing base in the region: but the Hong Kong Government want a plant capable of fulfilling Hong Kong's domestic needs and little more.

3.

Mr March concludes by reiterating a point made earlier in the letter, that the present timetable may well be optimistic, and suggests that you reassure your "contacts" in ICI head- quarters in London that BTC in Hong Kong are fully alive to their interests. However, the Managing Director of ICI (China) Ltd has already undertaken to inform his superiors of the lie of the land.

4. There is no record on our files of any "contacts", of our own, in ICI, and in view of paragraph 3 (above) there seems little need to reassure them. If we do wish to get in touch with ICI, we could go through Mr Ashford, of CREA, who has dealt with somebody at ICI headquarters before.

5.

Additionally, I have spoken to Mr Murphy in TRED and have received copies of his correspondence on this subject. His main concern is over the military categorisation of the water-gel explosives: this is the "extremely urgent" question referred to in his letter of 11 January 1978.

6.

I recommend that Mr Stewart should write to Mr March, with a copy to Mr Murphy, TRED, thanking him for the information contained in his letter and asking to be kept informed of any progress.

I submit a draft.

Ian Broker

Staan

CODE 18-77

S$ 10/76

11 January 1978

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Hong Kong & General Department

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