TNAG-0768-FCO40-972-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 182

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GR 270

IMMEDIATE

CYPHER CAT A

FM FCO 24183OZ

CONFIDENTIAL

CONFIDENTIAL

24

HERICH||

DESKBY 2501007

حله

TO IMMEDIATE HONG KONG TELNO BTC 52 OF 24 JULY INFO IMMEDIATE PEKING

See 13

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Telen

YOUR TELNO BTC 60 AND PEKING TELNO 453: HONG KONG COAL DEAL

1. WOULD YOU NOW SEND A LETTER TO KADOORIE AS FROM LIPPITT. WE UNDERSTAND THERE IS A HIGH LEVEL MEETING IN CLP ON TUESDAY 25 JULY TO DISCUSS THE CHINA PROPOSAL. IT WOULD BE VERY USEFUL TO THEM TO RECEIVE LIPPITT'S LETTER BEFORE THEN. THE TEXT SHOULD BE EXACTLY AS IN FCO TELNO 391.

2. THE DRAFT MEMORANDUM SHOULD BE AMENDED AS FOLLOWS:

PARA 1: FIRST SENTENCE: DELETE QUOTE PREVIOUS UNQUOTE

PARA 4: DELETE EVERYTHING AFTER QUOTE IN WHICH CASE UNQUOTE AND SUBSTITUTE QUOTE OTHER FINANCING ARRANGEMENTS COULD BE MADE UNQUOTE. ALSO OMIT THE ALTERNATIVE PARA 4.

PARA 51 OMIT ALTOGETHER.

3. THE DETAILED AMENDMENTS SUGGESTED BY YOU AND PEKING TO KADOORIE'S LETTER TO SUN HAVE BEEN PASSED TO DEWE MATHEWS, TO BE RELAYED TO KADOORIE.

4. DEWE MATHEWS WAS CONCERNED THAT A TRUST FUND SET UP AS

DESCRIBED IN YOUR PARA 1 WOULD NOT BE ACCEPTABLE TO THE CHINESE

AS IT GIVES CONTROL OVER THEIR MONEY TO OTHER PEOPLE, MOREOVER AS IT COULD NOT BE COMBINED WITH AN UNCONDITIONAL OBLIGATION ON THE

CONFIDENTIAL

/CHINESE