TNAG-0947-FCO40-1166-Oil-developments-in-and-around-Hong-Kong-1980 — Page 127

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CONFIDENTIAL

機密

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XCC(80)82

public is unlikely to object to the scheme except inasfar as it leads

to increased electricity bills. There should be no major public

relations problems so long as storage tankers are not moored in Hong

Kong waters.

18.

Publicity will explain that it seems prudent to set up a stock: of fuel oil in view of the continuing uncertainty of the Middle East situation and the fact that China could not supply us with enough fuel oil in an emergency. Because of current particular circumstances of the relative cheapness and availability of both spot cargoes and VLCC's the use of tankers, particularly a VLCC, seems the most practical method. It could be mentioned that the Japanese Government already

use about twenty VLCC's for this purpose.

Oil Policy Committee

19.

The Oil Policy Committee has been consulted and is in favour of pursuing further the use of tankers as a means of keeping

strategic stocks of fuel oil until such time as additional facilities

at the new power stations make this unnecessary.

The Committee

advised that the first option to be pursued should be the mooring of a VLCC outside Hong Kong waters.

Advice Sought

20.

Members are asked to advise whether

(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;

C.S. 166

CONFIDENTIAL #

/(b) the

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