TNAG-0767-FCO40-971-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 37

DRAFT LETTER FOR THE PRIME MINISTER TO SEND TO :

Sir Lawrence Kadoorie CBE, K St J(A), LLD, JP Chairman

China Light and Power Company Limited

St George's Building

HONG KONG

Thank you for your letter from Peking dated 26 May which took

a little time to reach me.

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 your initiative

is greatly appreciated.

Officials in the Department of Industry have been exploring possible

proposals for counter-trade arrangements based on sales of Chinese

coal and other raw materials. 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 look

forward to seeing you again when you are next in London.