TNAG-0769-FCO40-973-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 66

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CONFIDENTIAL

FM BTC HONG KONG 240105Z DEC 78

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TELEGRAM NUMBER INDUS 214 OF 4 DECEMBER

INFO PEKING FCO AND DOT.

FOR BENJAMIN UNDER SECRETARY IIC DIVISION.

PEKING TELNO 84 OF 25 SEPTEMBER TO ME: COAL FOR HONG KONG.

1. SIR LAWRENCE KADOORIE HAS BEEN TOLD BY THE CHINESE THAT THEY ARE READY TO DISCUSS THE EXCHANGE OF POWER FOR KWANGTUNG PROVINCE FOR THE SUPPLY OF COAL TO THE NEW CASTLE PEAK POWER STATION. THE CHINESE DECISION WAS CONVEYED BY TWO MEANS. FIRST, MR R C (DICK)

LEE THE HONG KONG INTERMEDIARY WHO SET UP SIR LAWRENCE'S VISIT TO CHINA IN MAY, TOLD CLP THAT THE EXCHANGE HAD BEEN AGREED IN PRINCIPE BY THE AUTHORITIES IN PEKING. SECOND, MR TAN KAN, VICE CHIEF EDITOR OF THE NEW CHINA NEWS AGENCY IN HONG KONG, TELEPHONED SIR LAWRENCE TO ENQUIRE HOW MUCH POWER CLP WOULD HAVE AVAILABLE FOR TRANSFER AND TO ASK HOW SOON ARRANGEMENTS COULD BE MADE FOR A VISIT TO CANTON BY A CLP TEAM. WHETHER OR NOT THESE DEVELOPMENTS WERE PROMPTED BY THE KNOWLEDGE THAT KADOORIE WOULD ASK THE AMBASSADOR FOR A PROGRESS REPORT DURING HIS BRIEFING VISIT TO HONG

KONG, THEY REPRESENT AS FAR AS I AM AWARE, THE FIRST POSITIVE RESPONSE TO THE U K MEMORANDUM WHICH WAS DELIVERED IN PEKING BY THE SOS(T) IN AUGUST.