TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 77

09

'GRS 225

PRORITY

CYP CAT A

FM PEKING 39073AZ JAN

RESTRICTED

RESTRICTED

TO PRIORITY FCO TELNO 48 OF 30 JAN.

HKK 164/1

RECLIVSE

30 JAN 1978

DESK OFFICE INDEX

No

PA

INFO ROUTINE BTC HONG KONG, DOT CREDA (CRE4), DI INDUS (MACDONALD ICS2).

YOUR TELNO 5 TO BTC HONG KONG: POWER STATION PROJECT. 1. I WILL TELL THE MFT THIS WEEK THAT THE AP STORY DID

NOT ORIGINATE FROM OFFICIAL SOURCES IN LONDON. IF

POSSIBLE I SHALL CONFINE MYSELF TO THAT STATEMENT RATHER

THAN SAY THAT WE REMAIN ANXIOUS TO CONCLUDE A DEAL SINCE SUCH A STATEMENT IS LIKELY TO PROVOKE QUESTIONS ABOUT THE

WAY IN WHICH WE THINK THE THREE POINTS OF THE TRIANGLE MIGHT BE CONNECTED FINANCIALLY. THIS IS AN ASPECT ON WHICH I STILL AWAIT GUIDANCE (DTI CREDA 4 TO ME). (8

NIR

THIS

2. YOU WILL HAVE SEEN FROM MY TEL CREDA 13 THAT THE

TOTAL CHINESE ORDER MIGHT BE ABOUT £127 MILLION. IS A GUESS BASED ON A HINT WHICH MORRIS OF ANDERSON STRATHCLYDE MANAGED TO GET FROM ONE OF HIS CHINESE INTERLOCUTORS WHO SAID THAT THE TOTAL ORDER MIGHT WELL BE BIGGER THAN THE LAST ONE (WHICH WAS ABOUT C109 MILLION).

I SEE NO SIGNIFICANCE IN RESPECT OF POSSIBLE SALES OF BRITISH MINING EQUIPMENT TO CHINA IN THE FACT OF HK

LEFT WING PAPERS CARRYING THE STORY PROMINENTLY. THE POLITICAL ADVISER WILL NO DOUBT COMMENT ON THIS, BUT I WOULD GUESS THAT THE LEFT WING PRESS WERE MORE INTERESTED

IN THE COAL FOR HONG KONG ANGLE ON WHICH THEY MAY WELL

HAVE HAD BRIEFING AS TO THE PARTY LINE.

4. THE PEOPLES DAILY HAS MADE NO MENTION OF THE SUBJECT NR (YOUR TEL NO 33) BUT THERE IS NOTHING SURPRISING IN THIS. THEY WOULD NORMALLY ANNOUNCE ONLY A FORMAL AGREEMENT

BETWEEN GOVERNMENTS.

133

YOUDE

FILES

HK & GD TRED FED

NEWS D

MR MURRAY

OID

MR CORTAZZI

AZZI MR THOMAS

RESTRICTED

COPIER TO

CREA DOT

MR MACDONALD ICS2 DOI