DRAFT TELEGRAM
Mr Lippitt (DOI) held an internal reeting on 24 May to discuss a possible
link between Chinese coal sales to the Hong Kong power station and UK
sales of mining machinery and other equipment. He observed that the
Ministry of Foreign Trade in China continued to show interest in such a
link and were reported to be expecting a UK response. The usual problem
case.
of finding a buyer for the counter-traded product did not apply in this
Hence provided Sir Lawrence Kedcnie would cooperate and the PRC
could be persuaded that coal sales depended on payment in UK machinery,
there was a major opportunity for the UK. The sums of money involved
indicate that it would have to extend more widely than coal mining
machinery. Deferred payment would be required but even so deliveries
might not begin for a year or so.
2
Department of Industry is working on an outline counter-trade
scheme and over the next few weeks it will be consulting other Departments,
potential UK suppliers of machinery and Sir Lawrence Kedowie.
Kedow
As soon as
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a scheme has been agreed, preferably before the end of June, it is intended
that a DoI team should go to Peking to present it to the Ministry for Foreign
Trade and other interested parties.
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3
We would be grateful if you could:-
lat the Ministry for Foreign Trade, Ministry for the Coal
Industry and any other interested department know of the proposal
to send a team to Peking in late June or July. You should make it
clear that this proposal is separate from the possible imminent
orders for UK mining machinery following the visit to PRC in January
by representatives of 3 manufacturers,
No comments yet.
Private notes are available after approval.