TNAG-0768-FCO40-972-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 23

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OFO 015/05

00 DO I

GR 750

DESKBY 050900Z

CCYPHER/CAT A

FM BTC HONG KONG 050835Z

NO DIST

Гордубов

DOINGS

Die TRES (2) HKK 164/1

ملا

RECOMEO ROKERY NO. 51

so kris

Do

INEX

1073

WAX OFFICER

PA

REGISTRY

Action Teken 1

No lo

a

CONFIDENTIAL

263

DESKBY 050928Z

TO IMMEDIATE D.0.1 TELNO.INDUS 144 OF 5 OCTOBER 78.

FOR NAVELOCK FROM THORNTON.

SECURITY.

1. YOUR INDUS 229. I HAVE HAD A LONG AND HELPFUL DISCUSSION WITH

GEMMILL.

2. I HAD NO DIFFICULTY IN PERSUADING HIM THAT FURTHER DISCUSSIONS

INITIATED BY HIM WITH BISCHOFF ON SECURITY RAN THE RISK OF MUDDYING WATERS, AND COULD ENCOURAGE THE LATTER TO SEE TWO ALTERNAT- IVE U.K CONTACTS LAZARDS/D.O. AND SCHRODERS/ECGD - TO PLAY OFF

AGAINST EACH OTHER. GEMMILL THEREFORE READILY ACCEPTED THAT HE

WOULD NOT RAISE THIS ISSUE AGAIN WITH BISCHOFF, THOUGH HE WOULD OF

COURSE FIELD ANY APPROACHES FROM HIM AND WOULD CONTINUE (AS I STRESSED WE WANTED) TO GIVE D.O.I THE FULL BENEFIT OF HIS ADVICE IN

THE LIGHT OF DEVELOPMENTS.

3. WE AGREED THAT IT WAS VITAL THAT HE AND DEWE-MATTHEWS KEPT CLOSELY IN TOUCH IN HONG KONG AND I WOULD BE GRATEFUL IF YOU COULD TACTFULY ENSURE THAT THE LATTER HAS CLEAR INSTRUCTIONS TO KEEP GEMMILL IN THE

PICTURE AS HE WOULD D.0.1.

4. GEMMILL IS UNREPENTANT ABOUT HAVING FLOATED THE QUESTION OF A

WORKING CAPITAL GUARANTEE OVER BISCHOFF LAST WEEK, SINCE IT REINFOR CED HIS PERSONAL DOUBT WHETHER DEWE-MATTHEWS WAS RIGHT TO BELIEVE THIS ACCEPTABLE. YOU WILL UNDERSTAND THAT IN THE PERIOD BEFORE DEWE-MATTHEWS' LETTER WAS SENT THIS WAS ALL THE CONTACT GEMMILL HAD ON SECURITY, THOUGH HE AND WE HAD EXHAUSTIVELY DISCUSSED THE QUESTION. RESULTING IN YOUR INDUS 133. (WHAT HAPPENED TO THAT