CONFIDENTIAL
Ester
&o
17
British Trade Commission in Hong Kong- 9th Floor Gammon House 12 Harcourt Road Hong Kong
Mail Address PO Box No 528 Hong Kong
Telex HX 73031
P. Morrice, Esq.,
BELEIVED IN RESTAY
HK 162/2
6
PA
Merion Taba
Cable Address Uktrade Hong Kong Telephone 5-280176 2 5/JUN 980
Hong Kong & General Dept. HKK1621
F.C.O.
Ник
DESK ØFÅ UN
Your referencÈNDEX
حل
Our reference ECO 162/1
Date
16 June, 1980.
22 OCT 1980
see (10)
Ms
882810
Philip,
PROSPECTS FOR CHINA OFF-SHORE OIL: HONG KONG INTERESTS
As you will know from our discussions here about your letter of 2 June to Dorward, we concur generally in the conclusions drawn from your discussions with BP about the prospects for a role for Hong Kong in the development of China's off-shore oil.
2. In essence the time-scale which will apply to this is geared to the pace at which the Chinese move. At present they are digesting the considerable volume of seismic data gathered by American oil companies operating up and down the coast of south China. This I understand could well take longer than was originally expected. Certainly bids for exploration drilling rights are unlikely to be invited this year. As the processing of bids will itself take time, the award of explorative drilling concessions by the middle of next year perhaps represents the most optimistic target date for the commencement of activity.
3.
It would certainly be consistent with the general attitude of the Chinese towards economic development to maximise their share of the service and support effort which will have to be mounted when the oil companies start work. I should guess that they will insist on the establishment of bases on Chinese territory as a condition of drilling contracts and in fact believe that in anticipation of this Zhan Jiang is being prepared as an advanced base for off-shore oil operations in this part of China. But Zhan Jiang may well prove deficient in terms of international communications and Hong Kong might develop some intermediate role as a feeder/administrative/ emergency centre tent and the highly developed facility now available in Singapore to serve the industries more sophisticated requirements. Dockyards with substantial ship servicing capacity already exist and land for a supply base could no doubt be found. But whatever happens I have no doubt that Hong Kong will be the place from which outsiders will best monitor the progress of China's
CONFIDENTIAL
/south coast....
No comments yet.
Private notes are available after approval.