TNAG-0767-FCO40-971-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 64

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concerned. He suggested that Sir Lawrence should make contact

with local representatives in Canton through the China Travel Service (Sir Lawrence was leaving Feking on 29 May and planned to arrive in Canton on about 8-9 June).

7. Mr Stones said that he and Sir Lawrence had already spoken

to MinMetals and had been told that the coal was of the right

quality and could be supplied in the quantities required. Mr Sun confirmed that there would be no problem over the supply of coal. Mr Stones suggested that the coal could be transported from Tatung to Chinhawangtao and thence by ship to Hong Kong. Mr Sun asked if Sir Lawrence wanted samples. Mr Stones said that the KESCO team would be collecting samples during their

visit to Tatung.

8. In reply to Mr Sun's questions, Sir "awrence explained that the total requirement of coal for the power station would be 2-2 million tons of coal per year. A pier was already in existence which could take ships of up to 100,000 tons. Init- ially ships of 25,000 tons could be used bu ships smaller than that could present difficulties. He hoped that subsequently ships of more than 25,000 tons could be introduced. Mr Sun commented that expansion work would have to be undertaken to adapt Chinese ports for larger ships. It was not feasable to use small ships to export coal. Sir Lawrence said that port equipment might be supplied from Britain in exchange for coal. Alternatively if China preferred to exchange coal for mining equipment this could also be arranged with Britain.

9. Sir Lawrence added that if Mr Sun could inform the auth- orities in Canton that he would be coming to Canton that would

be helpful. Mr Sun said that now that the first contact had been made he hoped that Sir Lawrence would return with specific ideas and proposals. He hoped that about the equipment to be supplied in exchange for coal. When these proposals were received he would pass them to the departments concerned.

10. Sir Lawrence reiterated that he was not a merchant and

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