TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 4

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-HEE 164/1

82

GI. $25

PRIORITY

CYPHER CAT A

FM HONG KONG 0709352

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TO PRIORITY FCO TELNO 435 OF 7 APRIL 1978

M

O APR 1973

KY

#Taken

FA

8692

See 86

INFO PRIORITY HONG KONG GOVERNMENT OFFICE LONDON (FOR BRAY),

PEKING.

FOR CORTAZZI.

YOUR TELNO 281: KADOORIE'S VISIT TO CHINA.

1. SIR LAWRENCE KNOWS VERY WELL THAT THE FCO, YOUDE AND MYSELF

ARE ALL AGREED THAT IT IS TOO SOON FOR OFFICIAL DISCUSSIONS WITH THE CPG ABOUT THE FUTURE OF HONG KONG, AND AGREES HIMSELF.

2. ON THE OTHER HAND, HE BELIEVES THAT MEANWHILE THE WAY COULD

AND SHOULD BE PAVED BY CREATION OF A MUTUALITY OF INTEREST. WITH THIS I ENTIRELY AGREE. IT IS FOR THIS REASON THAT WE HAVE GIVEN CHINA RESOURCES LAND AT PREFERENTIAL RATES FOR A TANK FARM, MACHINE TOOL FACTORY AND SHIPYARD, AND ARE GIVING FAVOURABLE CONSIDER- ATION TO THEIR REQUEST FOR A SITE FOR A PRESTIGE OFFICE BUILDING. KADOORIE'S WISH TO USE CHINA AS A SOURCE OF COAL FOR THE

POWER STATION AND HIS DREAMS OF A KWANGTUNG

ELECTRICITY GRID INCLUDING HONG KONG AND CANTON ARE PRACTICAL

AND IMPRACTICAL EXAMPLES OF THE SAME APPROACH.

3. I THINK THAT IN PEKING HE CAN BE TRUSTED TO STICK TO PARA 2. IF HE WAFFLES A LITTLE ABOUT THE MUTUAL INTEREST OF CHINA AND THE UK IN HONG KONG, I SEE NO HARM. THERE IS SUCH A MUTUAL INTEREST.

4. BUT HE MUST ON NO ACCOUNT HINT THAT HMG ARE READY TO NEGOTIATE, OR THAT THE MAINTENANCE OF CONFIDENCE IN HONG KONG AT THIS TIME REQUIRES THAT THEY DO. I DO NOT THINK THERE IS ANY LIKELIHOOD OF HIM DOING SO, BUT TO BE ON THE SAFE SIDE, I SUGGEST THAT WHEN

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BRAY LUNCHES