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IMMEDIATE
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CONFIDENTIAL
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CONFILENT I AL
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HKK164/1
2 4 JUL 1978
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TO IMMEDIATE PEKING TELEGRAM NO 391 OF 22 JULY, 1978,
INFO IMMEDIATE HONG KONG.
GONG KONG COAL DEAL.
MIPT HEREWITH TEXTS REFERRED TO:-
1.
Sea 1.86
190
881189
DRAFT COVERING LETTER TO SIR LAWRENCE KADOORIE FOR
SIGNATURE SY MR LIPPITT.
DURING CHRIS BENJAMIN'S DISCUSSIONS WITH YOU EARLIER THIS MONTH IT WAS AGREED THAT HMG WOULD BE AIMING TO SUBMIT PRO OSALS TO THE CHINESE TO COINCIDE WITH THE VISIT OF THE SECRETARY OF STATE FOR TRADE BEGINNING ON 6 AUGUST. WE ALSO AGREED TO ALLOW YOU AN OPPORTUNITY TO SATISFY YOURSELF THAT THE REFERENCE TO CLP'S ROLE
WERE ACCEPTABLE.
2. 1 NOW ENCLOSE THE DRAFT TEXT OF SUCH A MEMORANDUM PREPARED FOR SUBMISSION TO THE CHINESE. THE INTENTION IS FOR OUR EMBASSY IN PEKING TO PRESENT IT TO THE RELEVANT AUTHORITY A FEW DAYS DEFORE MR DELL'S ARRIVAL EITHER SIMULTANEOUSLY OR SHORTLY AFTER THEY HAVE FRESENTED A SPECIFIC PROPOSAL ON YOUR BEHALF. CHRIS BENJAMIN WILL BE IN PEKING WITH MR DELL TO FILL OUT ANY OF THE DETAILS OF THE MEMORANDUM WHICH MIGHT REQUIRE FURTHER EXPLANATION.
3. AS YOU WILL SEE, ALTHOUGH THERE ARE SEVERAL REFERENCES TO YOU THERE IS NO MENTION CF CLP OR KESCO, AS TO THE LATTER WE UNDERSTAND THAT BECAUSE ESSO HAVE NOT YET GIVEN THEIR FORMAL AGREEMENT NOTHING IMPLYING A COMMITMENT BY KESCO TO PURCHASES CF COAL FROM CHINA CAN BE SAID. WE UNDERSTAND THAT, IN FACT, YOU ARE CONFIDENT OF OBTAINING ESSO'S AGREEMENT TO THESE
CONFIDENTIAL
/PURCHASES
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