TNAG-0767-FCO40-971-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 18

THE PRIME MINISTER

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10 DOWNING STREET

AKK164/1

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RECEIVES AT NO. 51

3 JUL 1978

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Der fr herrence.

Thank you for your letter dated 26 May, which took a little

time to reach me from Peking.

I am glad that you found the Chinese receptive to your suggestion of counter-trade. We are seeking to give a new, general impetus to trade and commerce between Britain and China, and greatly appreciate your initiative.

Officials in the Department of Industry have been exploring possible proposals for counter-trade arrangements based on sales of Chinese coal in connexion with the Hong Kong Power Station

project. We shall need to be careful to work out together the form of the package to obtain the best results all round.

I understand that two of Alan Williams' officials in the

Department of Industry are going to Hong Kong on 2 July to

discuss the possibilities with you before putting any ideas

to the Chinese.

I was most interested to read your impressions of China today and its future prospects. I hope that your visit was enjoyable and hope to see you again before too long.

Sir Lawrence Kadoorie, CBE, JP.

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Tim Calfh

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