S 330
IMMEDIATE
CYP CAT A
Lee 208 4/210
CONFIDENTIAL
HKK 164
RECEIVED IN REGISTRY MO. 51
10 AUG 1978
DESK OF CR
INDEX
FM PEKING 930635Z AUG
CONFIDENTIAL
No.
PA
Action Inte
C2E
TO IMMEDIATE DI TELNO INDUS 23 OF 58 AUG.,
INFO BTC HONG KONG (FOR MARCH), FCO, DOT (CREA), AND DOI (FOR OLDHAM).
FOLLOWING FOR LIPPITT FROM BENJAMIN
1.
SIR DEREK EZRA'S REPORT COVERS THE OUTCOME OF DISCUSSIONS WITH MINISTRY OF COAL. THE WAY THE EXCHANGES WENT, THE CHINESE DECLARATION THAT THEY WOULD BE ASKING NCB TO UNDERTAKE THE DESIGN, CONSTRUCTION AND FULL EQUIPMENT OF TWO NEW FIELDS IN TATUNG WITH A VIEW TO SUPPLYING COAL TO HONG KONG WAS MADE BEFORE ANY SUBSTANTIVE DISCUSSION WAS POSSIBLE ON SIR LAWRENCE'S BORDER ELECTRIFICATION PROJECT. IT EMERGED AS A DECISION ALREADY TAKEN, AND INVOLVED WORK FOR WHICH PD/NCB WERE CONTENDING ON THE DESIGN AND · DEVELOPMENT OF THE FIELD IN LUCHEN BEING GIVEN TO THE GERMANS.
2. THE DETAILS OF THE FINANCING ARRANGEMENTS AND OTHER
ELEMENTS OF THE UK PACKAGE WERE DEFERRED FOR SEPARATE DISCUSSION. WHILST INITIALLY GIVING RISE TO SOME ANNOYANCE BY SIR DEREK THAT NCB WORK ON LUCHEN SHOULD HAVE BEEN ABORTIVE AND THE JOB HANDED TO THE GERMANS, THE NEW WORK ON THESE TWO FIELDS SHOULD INVOLVE VERY SUBSTANTIAL BUSINESS FOR THE UK RUNNING INTO SEVERAL £100 MILLIONS. IT IS ALSO SOMEWHAT AMBIGUOUS HOW FAR HONG KONG COAL'' MAY ALSO EMBRACE COAL SUPPLIES ENVISAGED THROUGH OTHER CONTACTS WITH THE CHINESE, EG JARDINES. EVEN SO, WE SHALL CLAIM AS MUCH CREDIT AS POSSIBLE FOR THIS DECISION FROM
SIR LAWRENCE'S DISCUSSIONS.
CONFIDENTIAL
13. PLEASE
(207)
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