TNAG-0768-FCO40-972-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 195

CONFIDENTIAL

WHICH WILL ENABLE CHINA TO PAY FOR THE TRANSMISSION FACILIT

COVER

A PERIOD OF FIVE YEARS FROM THE COMMISSIONING OF THE FACILITIES

(APPENDIX D).'

6. THIS PROPOSAL COULD BE IMPLEMENTED EITHER THROUGH CHINA RESOURCES CR THE ESTABLISHMENT OF A NEW TRADING COMPANY' IN HONG KONG TO ACT AS INTERMEDIARY BETWEEN CHINA, HONG KONG AND THE UNITED KINGDOM,

7. IF A NEW COMPANY IS CONSIDERED NECESSARY WE WOULD SUGGEST ATM JOINT VENTURE BETWEEN THE CHINESE AUTHORITIES, THE KADCORIE INTERESTS AND ANY OTHER ORGANISATION THAT COULD CONTRIBUTE TOWARD THE 'SUCCESS OF THE JOINT VENTURE, FOR EXAMPLE, INTERCONTINENTAL FUELS LIMITED (THE OVERSEAS TRADING ASSOCIATE OF THE BRITISH NATIONAL COAL BOARD),

COULD MARKET CHINESE COAL INTERNATIONALLY.

8. IN VIEW OF THE POSSIBILITY OF CHINA WISHING TO PROCEED IMMEDIATELY

WITH EITHER RURAL DEVELOPMENT OR RECEIVING A BULK SUPPLY OF

ELECTRICITY IT IS SUGGESTED THAT LIMITED PURCHASES OF COAL PRIOR TO 1982 COULD POSSIBLY BE ARRANGED THROUGH INTER-CONTINENTAL FUELS.

9. IN CONCLUSION MAY I SAY HOW MUCH BOTH MR STONES AND I ENJOYED

THE OPPORTUNITY OF TALKING WITH YOU DURING OUR RECENT VISIT TC

YOUR GREAT CITY.

OWEN

FILES

FED

ES & SD

COPIES TO

MR ROYCE

MR KNIGHTON

DEP SEC

ECON D

TRED

NEWS D

MR OLDHAM

IIC/AD

MR WILKS

BOTB

DOT

MR BROWNING

CRE4

HK & GD

MR TWYMAN

OPG

PS/MR JUDD

MR LOVE

CRE

PS/LORD GORONWY-ROBERTS

MR CROFT

FEA

PS/PUS

MR LIPPITT

DEP SEC

SIR A DUFF

MR FARROW

SBP

DOI

MR CORTAZZI

MR THORNTON

EPT

MR MURRAY

MR COTTERILL

ECGO

MR THOMAS

MR BUTLER MR LEAHY

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