TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 81

39

IMMEDIATE

GPS 300

CYPHER/CAT A

FM F C O 261835Z

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See 30

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#KK 16+/1

25 JAN 1978

SK OFFICER

TO IMMEDIATE BTC HONG KONG TELNO 5 OF 26 JANUARY

PA

ac. 31

REGISTRY

23 ken

AND TO IMMEDIATE PEKING INFO HONG KONG (FOR POLITICAL ADVISER YOUR TELNO BTC 6 AND BTC 7 OF 25 JANUARY: POWER STATION PROJECT 1. MACDONALD'S ESTIMATE IS THAT PRESS REPORTS ARE BASED EITHER ON DELIBERATE MOVE TO BUILD UP STORY OR ON JOURNALISTS' DIFFICULTY IN MASTERING A COMPLICATED STORY. (AS MACDONALD TOLD YOU ON 20 JANUARY SEVERAL UK NEWSPAPERS MADE ERRORS IN THEIR OWN REPORTS OF THE PRESS BRIEFING.)

2. AT PRESS BRIEFING ON 19 JANUARY MR WILLIAMS MINISTER OF STATE

DO

ANSWERED QUESTIONS CLOSELY IN LINE WITH BRIEF. HE DID SAY THAT HMG AND INDUSTRY HAD WORKED TOGETHER BUT ONLY IN RESPECT OF POWER STATION PROPOSALS. HE SAID THAT IF THE PEOPLE'S REPUBLIC PROVIDED COAL FOR CLP THIS WOULD STRENGTHEN THE GOOD RELATIONS THAT EXISTED BETWEEN PRC/HONG KONG/HMG, AND ACKNOWLEDGED THAT THIS HAD BEEN DISCUSSED AT MINISTERIAL LEVEL. HE ALSO SAID THAT UK COMPANIES HAD SOLD MINING MACHINERY TO CHINA IN THE PAST.

3. HOWEVER, THE MINISTER SAID NOTHING ABOUT A QUOTE THREE WAY DEAL UNQUOTE: HE WAS NOT ASKED ABOUT THE SUMS OF MONEY INVOLVED FOR COAL PURCHASES: NOR ABOUT THE POTENTIAL FOR MINING EQUIPMENT SALES. CONCEPT OF TWO SEPARATE ORDERS EACH OF DOLLARS 300 MILLION IS UNKNOWN TO US. SUGGESTION OF A DEAL BEING SIGNED IN NOVEMBER WAS NOT RAISED DURING THE BRIEFING: INDEED MR DELL'S NAME WAS NOT MENTIONED AT ALL. (AS YOU KNOW THERE HAVE BEEN NO DEVELOPMENTS ON THIS SINCE THE INISTERIAL MEETINGS.)

4. LINE YOU HAVE BEEN TAKING IN DEALING WITH PRESS ENQUIRIES IS ENTIRELY CORRECT. YOU SPOKE WELL.

5. (FOR PEKING). IN VIEW OF YOUR TELNO 44 PLEASE ASSURE MINISTRY

OF FOREIGN TRADE THAT STORY DID NOT ORIGINATE FROM OFFICIAL SOURCES HERE. WE REMAIN ANXIOUS TO CONCLUDE A DEAL BUT WOULD WANT NO

PUBLICITY UNTIL AGREEMENT HAS BEEN REACHED.

6. IT WOULD BE HELPFUL TO KNOW HOW ACCURATE THE AP FIGURES ON THE VALUE OF THE ORDER ARE.

7. DO YOU THINK THAT THE FACT THAT THE STORY WAS CARRIED AS FRONT PAGE NEWS BY THE COMMUNIST PRESS IN HONG KONG IS SIGNIFICANT? OWEN

FILES

HK & GD (5)

FED

COPIES TO CRE4 DOT

MR CORTAZZI

MR MACDONAL

IC2 DOI

TRED

OID NEWS D

MR MURRAY

MR THOMAS

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