TNAG-0768-FCO40-972-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 73

HOFO 010/27

GR 295

CYPHER CAT A

NO DISTRIBUTION

Терезорот

Kiva

RECENTE DE PARISTRY MOGAD

1978

The

hash

INOLX

OFFICER

PA

REGISTRY

Action Teken

FM BTC HONG KONG 270336Z

No Tal

See(255

CONFIDENTIAL

TO ROUTINE DO I TELNO INDUS 132 OF 27 SEPTEMBER 1978.

BENJAMIN IIC DIVISION FROM THORNTON.

X 3

Mringkpsn

THANKS FOR PHONE MESSAGE WHICH IN ESSENCE I HAVE ALREADY DISCUSSED

WITH DEWE MATTHEWS BEFORE DEPARTURE FROM UK. I UNDERTOOK AT HIS REQUEST THAT WE SHOULD NOT DURING OUR CURRENT VISIT GET INVOLVED IN DISCUSSIONS ON SECURITY ALTHOUGH WE WOULD OBVIOUSLY REPORT BACK ANYTHING RAISED WITH US (GEMMILL OF LAZARDS FULLY AGREES WITH THIS LINE). SO FAR THER HAS BEEN NOTHING.

2. IN VIEW OF THE LIPPITT VISIT LIKELY IN EARLY NOVEMBER, AND

DESIRABILITY OF HAVING SECURITY SATISFACTORILY CLEARED BEFORE THEN, I SUGGEST WE SHOULD NOT WANT ECGD'S VISIT TO BE ANY LATER THAN PROPOSED. I UNDERSTAND THAT THE PURPOSE OF DEWE MATTHEWS* VISIT; AND ONLY QUERY WHETHER A WEEK IN ADVANCE WILL BE SUFFICIENT (WHEN WE SPOKE HE SUGGESTED COMING OUT AROUND 10 OCTOBER).

3. WE RECOGNISE DESIRABILITY OF KEEPING ECGD AND OTHER DISCUSSIONS ENTIRELY SEPARATE. IT IS, HOWEVER, BECOMING APPARENT HERE THAT THERE MAY NEED TO BE ANOTHER VISIT ON COMMERCIAL AND FINANCIAL QUESTIONS IN ADVANCE OF LIPPITT. THE NEED FOR, AND TIMING OF, THIS VISIT IS NOT YET CLEAR ENOUGH TO KNOW WHETHER WE CAN AVOID OVERLAP WITH ECGD.

4. DISCUSSIONS ARE GOING REASONABLY WELL EXCEPT THAT BEI ROLE IS

CAUSING SOME DIFFICULTY. WE HAVE NOT YET DISCUSSED WITH KADOORIE, WHO IS NOW IN HONG KONG, THE LETTER OF INTENT** DEVICE ON UNITS 3 AND 4. INCIDENTALLY THERE IS SOME SUGGESTION THAT ESSO MAY NEARLY HAVE DECIDED TO COME IN ON THIS,

5. HAVELOCK AND THE REST OF TEAM STILL HOPE TO RETURN AT THE END

CF THE WEEK THOUGH EXTENSION CANNOT BE RULED OUT.

MORRISON