TNAG-0767-FCO40-971-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 33

No. 50

28 JUN 1978

DEEK OFFICER

PA

REGISTRY Action Taken

(167

00 PEKING

CO BTC HONG KONG

GRS210

DESKBY 280100Z

CYPHER CAT A

FM DTI 271835Z

FE

REC

INDEX

HKK 164/1

REASO

INDEX

29 JUN 1978 RED (2)

OFFICER

PA

2912

LENKY D

Beel. 179

CONFIDENTIAL

DESKBY 280100Z

TO IMMEDIATE PEKING TELNO INDUS 24 OF 27 JUNE

AND TO IMMEDIATE BTC HONG KONG.

163

YOUR INDUS 14: HONG/CHINA COUNTER-TRADE

WE CONFIRM THAT BENJAMIN'S VISIT TO PEKING IS POSTPONED BUT MOT (UNDERLINE) HIS DISCUSSIONS WITH KADOORIE.

2. WE WOULD BE GRATEFUL TO HAVE YOUR ESTIMATE OF THE DATE WHEN THE PROTOCOL FOR THE CURRENT MINING MACHINERY ORDERS WILL BE SIGNED: ALSO WE WOULD WISH TO KNOW IMMEDIATELY WHEN THEY HAVE BEEN SIGNED OR LOST TO THE COMPETITION. WE WILL KEEP IN TOUCH WITH THE FIRMS AT THIS END.

3. CHINESE EMBASSY HERE EXPRESSED DISAPPOINTMENT ABOUT THE DELAY AND HOPE SUBSTANTIAL PROGRESS CAN BE MADE BEFORE DELLS VISIT IN AUGUST. WE WILL THEREFORE SEEK AFTER DISCUSSIONS WITH KADOOR IE TO PREPARE PROPOSALS TO BE HANDED TO THE CHINESE AUTHORITIES AS SOON AS MINING MACHINERY PROTOCOLS ARE SIGNED,

4.

KADOOR IE HAS WRITTEN TO WILLIAMS, MINISTER FOR INDUSTRY, REPORTING THE OUTCOME OF HIS VISIT TO CHINA MUCH ON THE LINES OF INDUS 67 FROM BTC HONG-KONG. HE PROPOSES QUOTES THE CREATION OF A NEW ORGANISATION IN WHICH THE BRITISH GOVERNMENT (POSSIBLY INVOLVING THE N.C.B.) WOULD HAVE A DEFINITE INTEREST. UNQUOTE. HE EXPRESSES THE OPINION THAT THIS TYPE OF ORGANIZATION WOULD BE ЗЕ THE BEST MEANS OF DEALING DIRECT WITH THE VARIOUS DEPARTMENTS IN THE CHINESE GOVERNMENT. WE UNDERSTAND THE NEW ORGANISATION WOULD SEEK TO SELL CHINESE COAL ON THE WORLD MARKET AND WOULD BEGIN OPERATIONS BEFORE CLP BEGAN ITS COAL PURCHASES. IT IS NOT CLEAR WHETHER THIS BODY WOULD ALSO BE AN AGENCY FOR SELLING GOODS TO CHINA. YOUR URGENT ASSESSMENT OF HOW THE CHINESE MIGHT REGARD THIS IDEA IS REQUESTED.