TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 38

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IMMEDIATE GPS 250

CYPHER/CAT A

FM F. C 0 081558Z

FIDENTIAL

CONFIDENTIAL

TO IMMEDIATE BTC HONG KONG TELNO 18 OF 8 MARCH

INFO IMMEDIATE PEKING HONG KONG

CHINESE COAL FOR THE HONG KONG POWER STATION

HKK HKSO RECEIVED

INDEX

No

PLEASE PASS FOLLOWING TO SIR E YOUDE ON ARRIVAL 9 MARCH.

· MAR

63

3. 51

A

s

This was

draft, which

ज

1. WE ARE GENERALLY CONTENT WITH THE PROPOSALS IN YOUR TELNO 1979 agreed

OF 2 MARCH. SIR LAWRENCE MIGHT BE TOLD THAT:

See (64

A. THE PRC IS IN ACTIVE NEGOTIATION WITH UK MINING EQUIPMENT MANUFACTURERS (DETAILED TECHNICAL PROPOSALS ARE NOW ON THEIR WAY TO PEKING FOR SUBMISSION TO THE AUTHORITIES AND A BRITISH TEAM HOPE TO RETURN IN APRIL) ALTHOUGH IT IS STILL NOT CLEAR IF THE PROSPECTIVE CONTRACTS ARE LINKED TO THE PROVISION OF COAL FOR

· HONG KONG OR ARE SEPARATE.

Vinda

B. THE BRITISH GOVERNMENT WOULD BE INTERESTED IN A COAL FOR HONG KONG/EQUIPMENT FOR CHINA DEAL IF IT SEEMED LIKELY TO LEAD TO EXTRA SALES TO CHINA WHETHER OF MINING EQUIPMENT OR OTHER GOODS WHICH WE MIGHT OTHERWISE HAVE FAILED TO WIN. BUT WE WOULD SEE LITTLE ADVANTAGE IN A LINK JUST FOR THE SAKE OF ONE:

Pave

C. THE GOVERNMENT IS NOW CONSIDERING HOW SUCH A LINK MIGHT BEST BE ARRANGED, SHOULD THE CHINESE WISH TO DEVELOP IT. LIPPITT WOULD LIKE TO DISCUSS THIS ISSUE WITH SIR LAWRENCE WHEN HE COMES TO

LONDON NEXT MONTH.

2. BEARING IN MIND RECENT CHINESE COMMERCIAL OFFICE INTEREST IN HOW BARTER TRADE WORKS, GRATEFUL IF PEKING WOULD FIND A SUITABLE OPPORTUNITY TO ASCERTAIN IF CHINESE REGARD THEIR CURRENT NEGOTIATIONS AS CONNECTED WITH THE SCHEME TO SUPPLY COAL TO HONG KONG OR NOT. IF IT IS SEPARATE DO THEY HAVE VIEWS ON HOW A LINKED DEAL MIGHT BE ARRANGED OR WOULD THEY LIKE US TO MAKE PROPOSALS,

OWEN

FILES FED TRED

HK & GD

MR CORTAZZI MR MURRAY

COPIES TO CRE4 DOT MR MACDONALD

IC DIV DOI

MR BUTLER

CONFIDENTIAL