TNAG-0947-FCO40-1166-Oil-developments-in-and-around-Hong-Kong-1980 — Page 30

HKI

A/36

B

38

C

چرا

D

40

Clerk

Chief Clerk

4WY

CONFIDENTIAL

He did not raise this

$5.11.

مست

7/3/11

MEETING WITH THE GOVERNOR OF HONG KONG ON 3 NOVEMBER: PROPOSED PURCHASE OF OIL FROM SAUDI ARABIA

1.

Sir M MacLehose may mention Hong Kong's recent move to

increase its fuel stocks by buying Saudi oil through an

intermediary.

2. Hong Kong wish to purchase 200,000 metric tons of fuel

from Saudi Arabia through a middle-man.

This is against Saudi

law and if the deal were to come to light it could be

embarrassing to HMG since the Hong Kong Government have a

controlling interest in the purchasing company. We have

told Hong Kong that they should not deal through a middle-man

but approach Petromin in Jedda and then report on the outcome.

If Hong Kong get no joy there, we would have to consider

whether their stock situation was sufficiently serious as to

warrant the risk of purchasing Saudi oil through an intermediary.

3. The following relevant telegrams are attached:

a) Hong Kong Telegram No 1425 of 29 October gives the

details of the proposed deal;

b) Jedda Telegram No 775 of 30 October points out that

it is against Saudi law to buy through middle-men and

to pay commisions on oil deals;

c) FCO Telegram No 977 of 30 October to Hong Kong seeks

further information;

d) Hong Kong Telegram No 1438 of 31 October states that

their fuel situation is pressing and that they have

been unsuccessful in direct approaches to the oil

companies, but thatthey have not approached Petromin.

CONFIDENTIAD

/(e)

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