MINING MACHINERY SUPPLIES FOR 1979.
MET THE NEGOTIATING TEAMS FROM GULLICKS, DOWTY AND ANDER- SON, STRATHCLYDE. THEY STATED THAT AGREEMENT HAD BEEN REACHED ON TECHNICAL SPECIFICATIONS BUT NOT YET ON PRICE AND PAYMENT TERMS. CHINESE ADOPTING TOUGH STANCE. PARALLEL NEGOTIATIONS WITH GERMAN, FRENCH, AMERICAN, JAP- ANESE' AND AUSTRIAN SUPPLIERS. CHINESE TOLD US THEY EXPECT FURTHER CONCESSIONS BUT ALSO THAT THEY WISHED TO PLACE ORDERS WITH BRITAIN. MR DELL SAID THAT HE FELT SURE THAT BRITISH TERMS WERE FULLY COMPETITIVE AND 1 EMPHASISED TECHNICAL EXCELLENCE OF THE EQUIPMENT.
PUT IT TO THE CHINESE THAT IT WOULD BE TO CUR MUTUAL ADVANTAGE IF WE COULD DISCUSS WITH THEM THEIR MINING MACHINERY REQUIREMENTS OVER A LONGER PERIOD THAN AT PRESENT WHEN WE SEEMED TO BE LIMITED TO NEGOTIATIONS COVERING A YEAR AT A TIME. THEY RESPONDED SYMPATHETICALLY AND SAID THEY WOULD CONSIDER THE PROPOSAL. THE EMBASSY WILL BE FOLLOWING UP.
4. CHINESE COAL EXPORTS.
I SUGGESTED THAT WE WOULD BE ABLE TO HELP THEM TO MARKET THEIR COAL ABROAD THROUGH INTERCONTINENTAL FUELS LTD AND THEY EXPRESSED INTEREST. THIS WOULD BE IN ADDITION TO HONG KONG COAL. EMBASSY WILL BE SEEKING TO ARRANGE MEETING BETWEEN ICF AND CHINESE.
5. TECHNICAL INFORMATION.
CHINESE EXPRESSED DESIRE TO SEND FURTHER TEAMS TO VISIT MRDE (FOR WHICH THEY HAVE HIGH REGARD) AND MINES IN UK APPLYING ADVANCED TECHNOLOGY. I SAID WE WOULD WELCOME THIS AND THEY WILL NOTIFY US OF THEIR REQUIREMENTS. I PROPOSED, IN VIEW OF OUR CLOSE COLLABORATION, IN SO MANY ASPECTS OF MINING, THAT WE SHOULD SET UP A JOINT TEAM TO CONSIDER STILL FURTHER POSSIBILITIES, EG IN COAL RESEARCH. CHINESE WELCOMED THIS AND DISCUSSIONS SHOULD BE INITIATED IN DUE COURSE VIA EMBASSY.
6. GENERAL.
ATMOSPHERE AT MEETING WITH COAL MINISTRY WAS EXTREMELY CORDI AL. MANY REFERENCES BY CHINESE TO COURTEOUS AND HELPFUL WAY WHICH THEY HAD BEEN RECEIVED ON MINING VISITS TO BRITAIN. THE DEPUTY MINISTER OF THE COAL INDUSTRY, MR HSU TSAI-LIEN, ASKED PARTICULARLY TO BE REMEMBERED TO MR. SIDDALL.
THERE IS NO DOUST ABOUT PRIORITY BEING GIVEN BY PRESENT CHINESE GOVERNMENT TO EXPANSION IN COAL THROUGH INTENSIVE MODERNISATION PROGRAMME, CHINESE PLAINLY KEEN, TO HAVE BRITISH ASSISTANCE. BUT COMPETITION FROM OTHER MINING INTERESTS IS STRONG AND IN COMMERCIAL MATTERS CHINESE WILL BARGAIN FOR BEST DEAL.
7.
CIRCULATION.
PLEASE CIRCULATE THIS TO MR SIDDALL, MR MILLS AND OTHER BOARD MEMBERS, ALSO TO MEMBERS OF BRITISH COAL INTERNATIONAL. COPIES HAVE BEEN PASSED TO EMBASSY HERE AND TO DEPARTMENTS OF INDUSTRY AND TRADE. CHINA LIGHT AND POWER ARE BEING ADVISED OF .DEVELOPMENTS UNDER ITEM 1.
ENDS.
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