TNAG-0767-FCO40-971-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 129

CR 400

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+ (-FEC 1024 1978 -AKK 164)

Ir:.:

MAY

PA

Action Take

CYPHER CAT A

FM FCO 251908Z

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TO ROUTINE PEKING TELNO 274 OF 25 MAY

AND TO ROUTINE BTC HONG KONG

NIR

YOUR CREDA 103 AND BTC TELNO 40

116

COAL FOR HONG KONG POWER STATION

امي

See /129

132

1. DOT ARE CABLING SEPARATELY ABOUT CONVERSATION BETWEEN

THEM AND PRICE.

HE

LIPPITT (DOI) HELD AN INTERNAL MEETING 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. NOTED 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 OF FINDING A BUYER FOR THE COUNTER-TRADED PRODUCT DID NOT APPLY IN THIS CASE. 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 OF So.

2,

DEPARTMENT OF INDUSTRY IS WORKING ON AN OUTLINE COUNTER-TRADE SCHEME AND OVER THE NEXT FEW WEEKS WILL BE CONSULTING OTHER DEPARTMENTS, POTENTIAL UK SUPPLIERS OF MACHINERY AND SIR LAWRENCE KADOORIE. AS SOON AS A SCHEME HAS BEEN AGREED, PREFERABLY BEFORE THE END OF JUNE, IT IS PROPOSED THAT A DOI TEAM SHOULD GO TO

¡

PEKING TO PRESENT IT TO THE MINISTRY FOR FOREIGN TRADE AND OTHER

INTERESTED PARTIES.

3M IF YOU SEE NO OBJECTION WE SHOULD BE GRATEFUL IF YOU COULD:- A. LET THE MINISTRY FOR FOREIGN TRADE, MINISTRY FOR THE COAL INDUSTRY AND ANY OTHER INTERESTED DEPARTMENTS 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 AND ADDITIONAL TO THE POSSIBLE IMMINENT ORDERS FOR UK MINING MACHINERY FOLLOWING THE VISIT TO PRC IN JANUARY BY REPRESENTATIVES OF 3 MANUFACTURERS:

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