TNAG-0767-FCO40-971-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 27

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St. George's Building Hong trong

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16th June, 1978

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An estimate of our total needs beginning with 500, 000 tons in 1981 up to 2.5 million tons by 1984 and rising very substantially after that date was quoted to the Metal and Minerals Corporation.

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of coal for:

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We discussed 'compensatory deals' involving an exchange

i)

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equipment and services such as mining machinery and port facilities to be supplied by the United Kingdom.

ii) electricity to be supplied to Kwangtung Province thus

facilitating the electrifying of the Kowloon Canton Railway from Shum Chun to Canton. This again could involve the supply of British electrical equipment.

On the technical side Mr. Tein Kwang-Tao, General Manager, Metal and Minerals Import and Export Corporation, stated that he had received KESCO's coal specification from China Resources and that Metals and Minerals Import and Export Corporation could meet our requirements from the mines in Tatung. The coal would be exported from Chinwangtao in ships of 25, 000 tons. New berths were under construction and these should take ships of up to 50, 000 tons.

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A KESCO team was about to arrive in China for detailed discussions on the quality and quantity of coal available. Mr. Stones asked if it would be possible for that team to collect samples during their visit to bring back to Hong Kong for analysis. This was readily agreed.

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In our conversations with Mr. Emrys Davies, Charge d'Affaires of the British Embassy, he mentioned that Sir Edward Youde had discussed the possibility of exchanging coal for mining equipment with Mr. Sun suo-chang, Director, Third Department, Ministry of Foreign Trade (Western World). His department had shown interest but nothing had happened since July of last year.

It was obvious that some concrete action has to be taken as soon as possible. I promised to enlarge upon our proposals and to keep the Embassy fully informed.

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The presence of Mr. Liang of the Ministry of Foreign Affairs at a luncheon party organized by Mr. Emrys Davies at the British Embassy added support to our impression that our proposals were of considerable importance to China and had received political clearance at the highest level.

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