TNAG-0947-FCO40-1166-Oil-developments-in-and-around-Hong-Kong-1980 — Page 115

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INDEX

ملل

CONFIDENTIAL

НКК

RECEIVED NOS

30 JUL 1980

RISK OFAZER

ST

1:20

INDEX

No

18

BY AIRMAIL

GOVERNMent secRETARIAT

LOWER ALBERT ROAD

HONG KONG

PA

REGIST Action Free

Mr Williamson,

Honkong and General Department, Foreign Commonwealth Office,

U.K.

th July 1980

Dear Patrek

Proposal to keep Strategic Stocks

of Fuel Oil in Tankers

The Political Adviser has suggested that I should alert you to a proposal that the Hong Kong Government now has under active consideration.

On 10th June 1980, the decision was made by the Governor-in-Council that

(a) Hong Kong should in principle use tanker

storage to add 30 days to its strategic reserves of fuel oil for a minimum of one year and a maximum of two years, the situation being reviewed at the end of 1981;

(b) that the Government should appoint or set

up a company to act as agent for the purpose of making all the arrangements for the tanker storage, including financing (if necessary on the basis of the Government guaranteeing the loan), procurement, maintenance, administration and sale; and

(c) that the possibility of using two Long Range

Tankers 2 moored in Hong Kong waters should be considered as a first option and, if practicable, implemented, provided that the cost was not sub- stantially higher than HK$198 million for the

inventory cost and HK$88 million per annum for the storage and interest charges.

/Subsequently,

CONFIDENTIAL